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What Industrial 
Engineering Includes 

for 

Industrial 
Executives 

loi Things To Do 
looi Results Others Secured 

Blue Book Series y No. j 
PRICE ONE DOLLAR 



C. E. KNOEPPEL & CO., INC. 

INDUSTRIAL ENGINEERS 
NEW YORK 



^«^« 

.\\^' 



Copyright, 1921, by 
C. E. KNOEPPEL & CO., Inc. 



©CI.A617407 

JUN 20 1921 •••- ■ 



FOREWORD 

THERE have been many misunderstandings 
and misconceptions as to the scope of In- 
dustrial Engineering. From that definition 
which makes of Industrial Engineering the mere 
devising and installing of a system of records or 
the simple making of time-studies, up to that 
description and interpretation which is bold 
enough to include almost every phase of human 
endeavor, and at hundreds of stages in between, 
definitions have been offered. 

Through these widely varying descriptions, 
have come many misunderstandings and many 
very erroneous impressions. It is not to be 
wondered at that the industrial executive of 
today, studying into this profession, has some- 
times become rather confused as to just what 
field was covered, just what the aims and ob- 
jectives were, just what the scope and limitations 
of Industrial Engineering really were. 

It is, of course, logical that this condition 
exists at the present time. The entire develop- 
ment of this profession covers a period of only 
thirty years. Its members, including the pio- 
neers, have naturally had some variance of 
opinions in the past. It is gratifying, however, 
that during the last ten years there has been a 
very steady and definite coordination of these 
various principles and practices until the time 
seems to be present when it is possible to of- 
fer an acceptable, if not entirely final presenta- 
tion of what Industrial Engineering includes ac- 
cording to the best and most modern under- 
standing, and according to the most up-to-date 
accepted principles and practices. 



FORE WORD 



There has been an ever-growing demand 
among industrial executives for some such presen- 
tation as this book and the preparation has been 
accompHshed to fulfill this demand, with the 
sincere hope that in its acceptance industrial 
executives will recognize that while it is an am- 
bitious work, it is also an honest attempt to give 
them a reference from which they can most 
quickly analyze and ascertain complete informa- 
tion as to the scope of Industrial Engineering. 

C. E. Knoeppel & Co., Inc., have attacked the 
task which resulted in this book with the sin- 
cere feeling that, because of its position in the 
field as one of the oldest professional organiza- 
tions, it might well take the leadership in making 
such a presentation. 

Mr. Knoeppel and many of his associates are 
among the oldest members of the profession. 
The company has a staff organized for Industrial 
Engineering service, dating back many years, 
and has now an established prestige and repu- 
tation for accomplishment which justifies it as 
an organization fully and authoritatively 
qualified to offer for the first time a compre- 
hensive definition and description of the entire 
field of Industrial Engineering. 

Only a Beginning 

It is the intention of this company to consider 
this first presentation merely a basis for further 
researches and analyses and will aim to make 
from time to time such revisions of this book as 
will keep it up-to-date and make it possible 
to offer to all industrial executives interested 
a modern anditimely conception of the scope 
of Industrial Engineering. 

4 



FO RE WORD 



Realizing the necessarily large volume of ma- 
terial included in this description, a very careful 
and comprehensive set of indices have been de- 
veloped for the aid of the reader in locating 
particular features in which he may be interested, 
so as to permit him to use this book as a con- 
tinuous reference. 

Suggestions as to the quickest methods of 
reference are included in the next section under 
the heading ''Suggestions for Quick Reference." 

As industrial executives study this subject 
and become further interested they are cordially 
invited to write C. E. Knoeppel & Co., Inc., for 
any further information regarding any particu- 
lar classification, division, or phase of this sub- 
ject included herein. 

The complete indexing will make it possible 
quickly and easily to indicate the particular 
features regarding which further information is 
desirable. 

We are also prepared and willing to arrange 
for a complete discussion either in person 
by Firm Member, Staff Engineer, or through cor- 
respondence as to the application of "Knoeppel 
Organized Service" as well as to substantiate 
the results claimed for the proper carrying out 
of this work. 

Every Service Tested 

Each and every one of the hundred and one 
divisions of service described can be definitely 
applied to industry, but it is not likely that all 
of them could be applied in every plant. Natur- 
ally, the possibility of application varies with 
the actual conditions. 



FO RE WORD 



As an organization, we are prepared to handle 
the installations of every one of these phases. 
It is natural, of course, that with some of the 
more popular, we have had the greatest and 
most often-repeated experience. Each and 
every result indicated as possible from the ap- 
plication of these various divisions of service 
can be definitely substantiated and supported. 

Comments, criticisms, suggestions, and fur- 
ther inquiries are very welcome. 

C. E. KNOEPPEL & CO., Inc. 



Suggestions for Quick Reference 

WITH the realization of the volume of 
material necessarily included in the de- 
scription of what Industrial Engineering in- 
cludes, this book has been carefully classified and 
completely indexed, both according to Divisions 
of Services and Results Obtainable, so that the 
busy executive can refer to that item in which he 
is particularly interested, under either of these 
two headings. 

The Alphabetical Index of Service Divi- 
sions classifies the Divisions of Services alpha- 
betically, giving a symbol-number as well as the 
page-number. For instance, if he is interested 
in the subjectof "Product Design", he will find 
in this index that he is referred to Service Div- 
ision E-19,on page 108. Each and every one of 
the hundred and one divisions is classified and 
cross indexed so that he can easily find the 
page on which the Division of Services is describ- 
ed completely and the Results Obtainable in- 
dicated. 

The Results Obtainable Index is an al- 
phabetical indexing of all the Results Obtainable 
in the application of the various Divisions of 
Services. Here every result included is arranged 
and cross-indexed, and references given to the 
Service Divisions through the application of 
which the desired results can be obtained. 

In many cases, to secure a certain result con- 
sideration must be given to the application of 
more than one, and in some cases, many di- 
visions of service. However, if the student 
has in mind the result which he desires, he can, 
through reference to this index, quickly trace 
the Divisions of Service which will partially or 

7 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

entirely secure this result. These Service Di- 
visions are indicated by a capital letter and 
number symbol. To secure the page-number, 
reference must be made to the next index called 
the "Numerical Index of Service Divisions." 

For instance, if the desired result is the "De- 
velopment of a Proper Sequence of Orders", it 
will be found by reference to this alphabetical 
index, that the Service Divisions effecting this 
desired result, are indicated as D8 and F7. 

By referring to the Numerical Index of Ser- 
vice Divisions, page-numbers covering these 
two Service Divisions can readily be found. 

The Numerical Index of Service Divisions 
merely lists in numerical order, with the main 
letter prefixed, the hundred and one divisions, 
indicating in each case the page-number so that 
if the symbol is known from the Results Obtain- 
able index, the page describing the Service 
Division can easily be located. 

In inquiring for further information or dis- 
cussion regarding these services or results, it 
will merely be necessary for the reader to men- 
tion to us in his correspondence the symbol, let- 
ter and numeral, or title of service, and we will 
be glad to furnish further details and descriptions 
of the actual application of these services, ac- 
cording to our practices and principles. 



Alphabetical Index of Service 
Divisions 

. . Service „ 

Accounting, Division ^^8^ 

Control C 57 

Cost and General Merged C 3 59 

Methods, General and Cost C 13 69 

Methods, Labor ...... ,. C 7 63 

Procedure Analysis, Financial H 2 146 

Accounts, 

Control C 15 70 

General and Cost C 14 70 

Analyses, Industrial H 145 

Analysis, 

Distribution Plans and Activities H 8 151 

Financial and Accounting Procedure .... H 2 146 

Labor Control and Maintenance H 7 120 

Material Use and Control H 5 149 

Operations F 4 116 

Organization Plan and Personnel H 1 145 

Plant and Equipment H 4 148 

Plant Layout E 4 89 

Product and Inspection H 3 147 

Production and Cost Control H 6 150 

Purchasing, Traffic and Receiving F 7 120 

Rejections C 6 62 

Tool F 5 117 

Audit General and Cost Accounts C 14 70 

Basic Wage Rates G 1 127 

Basis for Unit Costs C 16 71 

Betterment and Staff Departments B 2 43 

Bills of Materials or Parts Lists F 3 115 

Budgets 

Burdens, and Equalize A 3 3S 

Plant Expenditures B 4 46 

Burden and Financial Statements C 4 60 

Burdens, Equalize and Budget A 3 38 

By-products E 13 100 

Charts and Write-ups, Organization B 3 44 

Chemical and Physical Laboratories E 21 109 

Clubs, Foremen's G 14 143 

Codes of Standing Expense Orders C 2 58 

Committees and Representation, Employes' . G 9 137 
Common Labor and Proper Use of Female 

Labor E 10 97 

9 



WHAT INDUSTRIAL ENGINEERING INCLUDE S 

Concentrate Managerial Personnel A 5 39 

Conference Plans, Executive B 1 43 

Conservation and Maintenance of Finance. . A 37 
Construction, Survey Plant Location and 

Designs E 22 110 

Control, 

Accounting C 57 

Accounts C 15 70 

Managerial B 43 

Material Use H 5 149 

Organize Material Storage, Records F 2 114 

Personnel G 127 

Production F 113 

Sales.. D 73 

Technical E 85 

ControUerships B 5 47 

Cost, 

Accounting Methods, General C 13 69 

Accounts, Audit of General C 14 70 

Control of Production H 6 150 

For Predetermining Selling Price D 7 79 

Merged with General Accounting C 3 59 

Unit Basis ..C 16 71 

Cutting Tools, Design and Use StandardizedE 2 86 

Deliveries, Improved D 8 80 

Department, 

Betterment and Staff B 2 43 

Install Economic Research B 13 54 

Organize Statistical B 6 48 

Procedure, Prescribe Engineering and 

Drafting E 16 104 

Departmental Economies A 4 38 

Design, 

Plant Construction E 22 110 

Product E 19 108 

Standardized Cutting Tools E 2 86 

Dispatching and Timekeeping F 6 118 

Distribution Plans and Activities H 8 151 

Drafting Department Procedure E 16 104 

Economic Research Department B 13 54 

Economies, Departmental A 4 38 

Education and Training G 4 131 

Efficiency Records, Personnel G 3 130 

Employes' Committees and Representation . G 9 137 

Employment Department G 6 133 

Engineering and Drafting Department Pro- 

cedure E 16 104 

10 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Equipment, 

Inventories, Create C 8 64 

Plant Analysis H 4 148 

Standardize and Improve Use E 1 85 

Executive, 

Conference Plans B 1 43 

Personnel B 9 51 

Expenditures, Budget Plant B 4 46 

Expense Orders, Codes of Standing C 2 58 

Experimental Work, Research E 12 99 

Export Possibilities D 11 83 

Factory Conditions, Coordinated with Sales 

Effort D 6 78 

Female Labor, Outline Proper Use of Com- 
mon and E 10 97 

Finance, Conservation and Maintenance . . .A 37 

Financial, 

Accounting Procedure Analysis H 2 146 

Statements, Burden C 4 60 

Fixtures and Jigs E 3 88 

Foremen's Clubs G 14 143 

Future Program B 12 53 

General, 

Accounting, Merge with Cost C 3 59 

Cost Accounting Methods C 13 69 

Cost Accounts, Audit. C 14 70 

Generation and Transmission, Power E 6 92 

Graph Procedures and Methods B 8 49 

Graphic Statistics and Statements B 7 49 

Graphical Planning and Scheduling F 10 123 

Graphics to Workers G 5 132 

Hourly Production Rates, Standardized. . . .F 1 113 

Hours of Labor Ahead, Inventory F 8 121 

Idleness Records C 5 6 J^ 

Incentives G 2 128 

Industrial Analyses H 145 

Inspection, 

Analysis, Product H 3 147 

Anticipative Maintenance E 5 91 

Apply Better. . E 7 93 

Insurance and Pension Plans G 12 141 

Inventories, 

Equipment C 8 64 

Material C 9 65 

Requirements A 2 37 

Inventory of Hours of Labor Ahead .F 8 121 

11 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Jigs and Fixtures, Use E 3 88 

Job Analysis and Specification G 10 139 

Labor, 

Accounting Methods C 7 63 

Control and Maintenance Analysis H 7 151 

Inventory of Hours Ahead F 8 121 

Proper Use of Female and Common. ... E 10 97 

Savings A 6 40 

Laboratories, Install Chemical and Physical E 21 109 

Limits and Tolerances E 18 107 

Lost Sales D 4 76 

Machine Rates C 12 68 

Maintenance, 

Analysis, Labor Control H 7 151 

Anticipative Inspection E 5 91 

Financial A 37 

Managerial, 

Control B 43 

Personnel A 5 39 

Material, 

Handling E 11 98 

Inventories C 9 65 

Parts Lists F 3 115 

Salvage of Surplus A 1 37 

Specifications E 20 108 

Storage, Records and Control F 2 114 

Use and Control Analysis H 5 149 

Methods, 

Eliminate Unproductive A 7 40 

General and Cost Accounting C 13 69 

Graph Procedures B 8 49 

Labor Accounting C 7 63 

New Lines D 9 81 

Office Procedure, Improved C 10 66 

Operation, 

Analysis F 4 116 

Wastes E 15 103 

Order Progress Records F 9 122 

Orders, Codes of Standing Expense C 2 58 

Organization, 

Charts and Write-ups B 3 44 

Plan and Personnel Analysis H 1 145 

Overhead Rates, Standard C 1 57 

Parts Lists and Bills of Materials F 3 115 

Pension Plans and Insurance G 12 141 

12 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Personnel, 

Analysis and Organization Plan H 1 145 

Control G 127 

Efficiency Records G 3 130 

Executive B 9 51 

Managerial A 5 39 

Physical Laboratories, Chemical E 21 109 

Planning and Scheduling, Graphical F 10 123 

Plans, 

Analysis of Distribution H 8 151 

Executive Conference B 1 43 

Insurance and Pension G 12 141 

Plant, 

Equipment Analysis H 4 148 

Expenditures, Budget B 4 46 

Layout E 4 89 

Location, Design and Construction E 22 110 

Power Generation and Transmission E 6 92 

Predetermined Selling Price and Costs D 7 79 

Price, 

Adjustment D 5 77 

Predetermined Costs and Selling D 7 79 

Procedure, Office C 10 66 

Procedures and Methods, Graphical B 8 49 

Product, 

Design E 19 108 

Inspection Analysis H 3 147 

Production, 

Control F 113 

Cost Control Analysis H 6 150 

Rates, Hourly F 1 113 

Stabilization B 11 52 

Profit-making Possibilities, Undeveloped . . . D 2 74 

Program, Future . . . B 12 53 

Progress Records, Order F 9 122 

Publicity Factors, Unused D 10 82 

Purchasing, Traffic and Receiving Analysis. . F 7 120 

Rates, 

Machine C 12 68 

Standard Hourly Production F 1 113 

Standard Overhead C 1 57 

Receiving, Purchasing and Traffic Analysis . . F 7 120 

Records, 

Idleness C 5 61 

Material Storage F 2 1 14 

Order Progress P 9 122 

Personnel Efficiency G 3 130 



13 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Rejections C 6 62 

Representation, Employes' Committees. . . .G 9 137 

Requirements, Inventories A 2 37 

Research, 

Department, Economic B 13 54 

Experimental Work E 12 99 

Safety Campaign G 8 136 

Sales, 

Control D 73 

Effort Coordinated with Factory Condi- 
tions D 6 78 

Lost D 4 76 

Possibilities, Unexploited D 1 73 

Savings, Labor A 6 40 

Scheduling, Graphical Planning F 10 123 

Selling Price and Costs, Predetermined D 7 79 

Specification and Job Analysis G 10 139 

Specifications, Material E 20 108 

Staff Departments B 2 43 

Standard, 

Overhead Rates C 1 57 

Practice Write-ups C 11 67 

Standardization E 17 106 

Standardized, 

Cutting Tools, Design and Use E 2 86 

Hourly Production Rates F 1 113 

Use of Equipment E 1 85 

Standing Expense Order Codes C 2 58 

Statements, 

Burden and Financial C 4 60 

Graphical Statistics B 7 49 

Statistical Department B 6 48 

Statistics and Statements, Graphical B 7 49 

Stock Participation Possibilities G 13 142 

Suggestions G 7 135 

Surplus Materials, A 1 37 

Survey of Plant Location, Design and Con- 
struction E 22 110 

Technical Control E 85 

Tests, Trade and Vocational G 11 140 

Timekeeping and Dispatching F 6 118 

Time Study Campaigns E 14 101 

Tolerance and Limits E 18 107 

Tool, 

Analysis F 5 117 

Rooms E 8 94 

Trade and Vocational Tests G 11 140 

14 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Traffic, Receiving and Purchasing F 7 120 

Training and Education G 4 131 

Transmission and Power Generation E 6 92 

Undeveloped Profit-making Possibilities. . . .D 2 74 

Unexploited Sales Possibilities D 1 73 

Unit Costs Basis C 16 71 

Unproductive Methods A 7 40 

Unprofitable Lines D 3 75 

Unused Publicity Factors D 10 82 

Vocational Tests, Trade G 11 140 

Wage Rates, Basic G 1 127 

Wastes, Operation E 15 103 

Workers, Graphics for G 5 132 

Working Conditions, Improved E 9 95 

Works Managerships B 10 51 

Write-ups, 

and Organization Charts B 3 47 

Standard Practice C 11 64 



15 



Alphabetical Index of Results 
Obtainable 

Accidents, Reduced, E-4, E-8, E-9, E-11, E-15, E-22, 

G-8, H-7. 
Accounting, 

Accuracy, B-5, C-3, C-13, C-14, F-7, F-10, H-5, H-6. 

Improved, C-15, F-10, H-2. 

Labor Costs, C-7, F-10, H-6. 
Accuracy, 

Accounting, B-5, C-3, C-13, C-14, F-7, F-10, H-5, H-6. 

Costs, C-3, C-13, C-14, F-6, H-5, H-6. 

Records, C-11, C-14, C-15, H-2. 
Additional Sales Arguments, D-1, D-2, D-10. 
Adjustments, Price, B-11, C-1, D-1, D-2, D-3, D-4, D-5, 

D-6, D-7, H-8. 
Advertising, 

Campaigns, H-8. 

Information, Use of, D-1, D-5, D-10. 
Agitation of Labor, Prevention, E-9, G-8, G-9, G-12, G-13. 
Analysis, 

Competition, D-5, H-8. 

Cost Flunctuations, C-2, C-15, C-16. 

Losses, C-6, H-3, H-5, H-8. 

Sales Effort, D-1, D-4, D-7. 
Anticipated Maintenance of Equipment, E-5, H-4. 
Anticipative Cost, F-1, H-2. 
Application of Sales Effort, D-1, D-2, D-3. 
Appraisal, Equipment, C-8, C-9, H-4. 
Arguments, Sales, Additional, D-1, D-2, D-10. 
Assignments, Salesmen, Better, D-4. 

Balanced Operations, A-3, B-11, D-6, E-5, F-1, F-4, F-6, 

G-6. 
Basis, 

Burden Distribution, C-7, C-12, H-2. 

Measurement of Executives, B-4, B-9, C-2, C-3, C-16, 

E-13, E-14, F-8, F-10, G-7, G-9, G-14, H-1. 
Measurement of Personnel, A-4, A-6, B-3, B-8, B-9, 
B-11, C-6, C-7, E-15, E-18, F-1, F-10, G-1, 
G-2, G-3, G-4, G-6, G-10, G-11, G-14, H-1. 
Overhead Distribution, C-7, C-12, H-2. 
Better 

Deliveries, D-4, D-6, D-8, E-5, E-6, E-11, E-14, 
E-16, E-22, F-4, F-6, F-7, F-8, F-9, F-10, G-6, 
G-8, H-6, H-8, 
Management Records, A-3, B-5, E-9, F-9,F-10. 
Tool Service, E-8, F-4, F-5, F-6, H-4. 

17 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Budgets, Establishment of, B-4, H-2. 
Buildings, Standardized, H-4. 
Burden, 

Distribution Basis, A-3, C-7, C-12, H-2. 

Rates, Standard, B-1. 

Statements, C-4. 

Campaigns, Advertising, H-8. 
Cancellationj, Reducing, F-9. 
Capacity, 

Effective Use of, F-5, F-6. 

Unused, Reduced, D-1, D-6, D-9, D-11, E-1, E-4, 
E-9, E-11, F-2, F-10, H-4. 
Charging Expense, C-2, C-15, C-16, F-9. 
Charts, Organization, B-3, H-1. 
Comparisons, Cost, C-2, C-15, C-16. 
Compensation Insurance, H-7. 
Competition, 

Analysis of, D-5, H-8. 
Price, D-5, D-11. 
Competitive Strength, Greater, B-13, D-7, D-8, D-11, 

E-22. 
Compilation of Statements, Improved, B-6. 
Concentration, 

Effort, Sales, D-3, D-4, 0-5, D-6, D-10. 
Responsibility, Organization, B-10, H-1. 
Conferences, Staff, H-1. 
Control, 

Equipment, C-12, E-14, F-4, F-5, F-6. 

Expense, B-4, C-2, C-3, C-15, H-1. 

Labor, F-6, H-7. 

Material, C-9, E-4, E-5, E-11, E-14, E-20, E-22, F-2, 

F-3, F-6, F-7, H-5. 
Production, E-4, E-7, E-8, E-9, E-10, E-11, E-14, 
E-16, E-20, E-22, F-1, F-2, F-4, F-6, F-7, F-8, F-9, 
F-10, G-6, G-10, H-2, H-6. 
Cooperation among Labor, G-5, G-8, G-9. 
Coordination of Management, B-1, B-3, B-8, C-U, C-14, 
D-8,E-2,E-3,E-9, E-22, F-1, F-4, F-5, F-6, F-7, 
F-8, F-9, F-10, G-2, G-3, G-4, G-5, G-6, G-7, G-8, 
G-9, G-12, G-13, G-14, H-1, H-7. 
Cost, 

Analysis Fluctuations, C-2, C-15, C-16. 

Anticipative, F-1, H-2. 

Comparisons, C-2, C-15, C-16. 

Equipment Maintenance Reduced, E-1, E-3, E5-, 

E-6, E-8, E-15, F-5, H-4. 
Insurance Reduced, E-4, G-8. 

18 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Labor Reduced, A-6, E-10, E-13, E-16, F-1, F-6, 
F-8, F-9, F-10, G-2, G-5, G-6, G-10. 

Power Generation Reduced, E-6. 

Production Reduced, A-5, B-11, C-16, D-2, D-8, D-9, 
E-2, E-3, E-4, E-5, E-6, E-9, E-10, E-11, E-12, 
E-13, E-15, E-16, E-18, E-19, E-21, E-22, F-3, 
F-4, F-5, F-6, F-7. F-8, F-9, F-10, G-2, G-5, 
G-6, G-7, G-9, G-10, G-13, H-5, H-6. 

Publication, B-7. 

Reduction of Material, E-2, F-7, H-5. 

Simplification, C-3, C-13, F-1, F-3, F-10, H-6. 

Tools Reduced, E-2, E-8, E-15, E-18, F-5. 

Use of, C-3, C-4, C-13, H-2. 
Costs, 

Accuracy, C-13, C-14, F-6, H-5, H-6. 

Improved, F-10, H-2. 

Labor, Accounting, C-7, F-10, H-6. 
Credit and Collection Procedures, H-2. 

Data, Production, for Sales, D-1, D-2, F-10. 
Decreased Inventories, A-2, F-2, F-7, F-10, H-5. 
Deliveries, Better, D-4, D-6, D-8, E-5, E-6, E-11, 
E-14, E-16, E-22, F-4, F-6, F-7, F-8, F-9, F-10, 
G-6, G-8, H-6, H-8. 
Department, Research, B-13, E-12, 
Departmental Statements, H-2. 
Departmentalize Organization, H-1, H-2. 
Depreciation, Determination of, C-8. 
Design, Simplification of Product, D-5, E-19. 
Determination of Depreciation, C-8. 

Development, Executives, Their, A-5, B-4, C-2, C-3, 
F-8, F-9, F-10, G-2, G-3, G-4, G-5, G-7, G-8, 
G-9, G-11, G-14, H-1. 
Distribution, 

Basis, Burden, A-3, C-7, C-12, H-2. 

Basis, Overhead, C-7, C-12, H-2. 

Duties, B-9, C-11, G-11, H-1. 

Overhead, A-3. 
Duties, 

Distribution of, B-9, C-11, G-11, H-1. 

Organization, B-3, H-1. 

Economical, 

Preparation of Records, B-6, C-13. 

Preparation of Statements, B-6, C-13. 

Purchasing, A-2, A-4, B-11, C-9, E-11, E-19, E-20, 
E-21, F-2, F-3, F-7, F-9, F-10, H-3, H-4. 

Purchasing of Equipment, F-9, H-4. 
Economies, 

19 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Production, A-5, A-6, A-7, B-2, B-U, C-10, C-11, 

D-8, D-9, E-1, E-2, E-3, E-4, E-7, E-U, E-12, 

E-14, E-15, E-16, E-17, E-20, E-22, F-6, F-9, F-10, 

H-3, H-6. 
Use of Personnel, A-4, E-9. 
Education, 

Labor, B-8, E-1, E-2, E-3, E-9, E-18, G-2, G-3, 

G-4, G-6, G-8, G-10, G-14. 
Office Employes, B-8, C-11. 
Effective 

Records, B-7, C-2, C-16. 
Use of Capacity, F-5, F-6. 
Efficiency, 

Equipment, C-8, C-12, E-1, E-5, E-6, E-8, F-5. 
Increased, General, B-2, B-3, B-8, B-9, B-12, C-11, 

E-2, E-9, E-15, E-18, F-5, G-8, G-13, H-6. 
Effort, 

Eliminate Unnecessary, B-8, B-9, C-10, C-11, C-13, 

D-7, D-8, H-1. 
Sales, Analysis, of, D-1, D-4, D-7. 
Sales, Application of, D-1, D-2, D-3. 
Eliminate Unnecessary Effort, B-8. B-9, C-10, C-11, 

C-13, D-7, D-8, H-1. 
Employment, 

Labor Improved, E-15, F-8, G-1, G-2, G-4, G-6, 

G-10, G-11. 
Proper Records, H-7. 
Encouragement of Labor, A-1, B-12, E-8, E-11, E-13, 

E-18, G^13. 
Equipment, 

Anticipated Maintenance, E-5, H-4. 

Appraisal, C-8, C-9, H-4. 

Control, C-12, E-14, F-4, F-5, F-6. 

Economical Purchasing, F-9, H-4. 

Efficiency of, C-8, C-12, E-1, E-5, E-6, E-8, F-5. 

Improvement in, C-5, E-1, E-2, E-3, E-7, E-14, E-15, 

E-17, G-2, G-4, G-5, G-7, G-9, G-14. 
Longer Life, E-1, E-5, E-6, E-8, F-5. 
Maintenance, Reduced Cost, E-1, E-3, E-5, E-6, E-8, 

E-15, F-5, H-4. 
Scrapping of, C-8. 
Set-up Time Reductions, F-4. 
Standardized, E-1, E-15, E-17, F-10, H-4. 
Establishment, 

Budgets, B-4, H-2. 

Sales Price, B-4, B-11, C-1, C-12, C-16, D-2, D-5, 

D-7, F-1, F-4, F-7. G-1, G-2, H-2, H-8. 

20 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Estimating, 

Price Improved, B-4, C-1, C-12, C-16, D-2, D-5, 

D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 
Proper, E-14. 

Sales Price, B-4, B-11, C-1, C-12, C-16, D-2, D-5, 
D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 
Executive Detail Reduced, F-10. 
Executives, 

Basis for Measurement, B-4, B-9, C-2, C-3, C-16, 

E-13, E-14, F-8, F-10, G-7, G-9, G-14, H-1. 
Their Development, A-5, B-4, C-2, C-3, F-8, F-9, 
F-10, G-2, G-3, G-4, G-5, G-7, G-8, G-9, G-U, 
G-14, H-1. 
Expansion of Market for Product, D-1, D-4, D-6, D-7, 
D-9, D-10, D-11, E-12, E-13, E-15, E-17, E-19, 
E-20,E-21, H-8. 
Expense, 

Charging, C-2, C-15, C-16, F-9. 
Control, of, B-4, C-2, C-3, C-15, H-1. 
Receiving Reduced, H-5. 
Reduction, B-4, C-2, C-3, C-15. 
Standardized, C-1, C-2. 
Export Markets, D-11. 
Fair Judgment of Labor, C-7, E-1, F-10, G-1, G-2, G-3, 

G-5,G-6, G-10, G-11. 
Financial, 
Policies, H-2. 
Records, H-2. 
Reorganization, C-14. 
Statements, C-4. 
Fire Hazard Reduced, E-11, E-15, E-22. 
Fluctuations, 

Analysis Cost, C-2, C-15, C-16. 
Production , Reduced, B-11, C-1, C-4. 
Follow-up and Literature, Sales, H-8. 
Foremanship Improved, C-7, E-1, E-2, E-3, E-14, E-15, 
E-16, E-17, E-18, F-1, F-5, F-8, F-9, F-10, G-1, 
G-2, G-3, G-14. 
Fuel Cost Reduced, E-6. 
Future, 

Investment, Planning, C-15. 

Policies of Management, B-12, B-13, C-4, D-6, F-9, 

F-10. 
Sales Policies, D-1, D-6, H-8. 
Generation, Power Cost Reduced, E-6. 
Good Will, Improve Trade's, D-3, D-8, F-10. 
Greater Competitive Strength, B-13, D-7, I>-8, D-11, 
E-22. 

21 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Handling, Material, Improvement, E-4, E-7, E-11, F-2, 

G-2, G-4, G-5, G-7, G-9, G-14, H-6. 
Higher Grade Labor, F-8, F-10, G-3, G-4, G-6, G-7, 

G-8, G-9, G-12, G-13, G-14. 

Idleness, Losses Indicated, Men and Machines, B-11, 

C-5, E-1, E-5, E-6, E-8, E-11, E-15, E-16, E-21, 

F-4, F-6, F-7, F-8, F-9, G-8, H-6. 
Improve Trade's Good Will, D-3, D-8. F-10. 
Improved 

Accounting, C-15, F-10, H-2. 

Compilation of Statements, B-6. 

Costs, F-10, H-2. 

Foremanship, C-7, E-1, E-2, E-3, E-14, E-15, 

E-16,E-17, E-18, F-1, F-5, F-8, F-9, F-10,G-1, G-2, 

G-3, G-14. 
Inspection of Product, E-16, E-18, E-19, E-20,E-21, 

F-2, F-3, F-4, F-6, F-7, H-3. 
Invoicing, C-1. 
Labor Employment, E-15, F-8, G-1, G-2, G-4, G-6, 

G-10, G-U. 
Methods, C-10, C-13, C-14, E-1, E-2, E-7, E-14, 

E-15, E-17, E-22, F-1, F-2, F-10, G-2, G-4, 

G-5, G-7, G-9, G-10, G-14, H-2, H-3. 
Price Estimating, B-4, C-1, C-12, C-16, D-2, D-5, 

D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 
Processes, C-10, C-14, E-1, E-2, E-7, E-14, E-15, 

E-17,E-22, F-1, F-2, F-10, G-2, G-4, G-5, G-7, 

G-9, G-10, G-14, H-2, H-3. 
Product, C-6, D-3, D-4, D-9, D-10, E-7, E-9, E-11, 

E-12, E-15, E-16, E-17, E-18, E-19, E-20, E-21, 

F-5, F-10, G-2, G-4, G-5, G-7, G-9, G-11, 

G-14, H-3. 
Routing, C-12, E-14, F-1, F-4, F-8, F-10, H-4, H-5, 

H-6. 
Shipping, H-4. 
Improvement, 

Equipment, C-5, E-1, E-2, E-3, E-7, E-14, E-15, 

E-17, G-2, G-4, G-5, G-7, G-9, G-14. 
Handling Material, E-4, E-7, E-11, F-2, G-2, G-4, 

G-5, G-7, G-9, G-14, H-6. 
Tools, E-2, E-7, F-5, G-2, G-4, G-5, G-7, G-9, G-14, 

H-4. 
Incentives for Labor, Proper, A-6, C-6, E-7, E-14, F-1, 

G-2, G-3, G-5, G-7, G-9, G-U, G^13, G-14. 
Increased 

Efficiency, General, B-2, B-3, B-8, B-9, B-12, C-U, 

E-2, E-9, E-15, E-18, F-5, G-8, G-13, H-6. 

22 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Production, B-11, E-1, E-3. E-9, E-10, E-11, E-15, 
E-21, E-22, F-1, F-10, G-2, G-5, G-8, G-9, 
G-11, G-13, H-6. 
Increasing Sales, B-11, B-13, D-1, D-2, D-5, D-7, D-8, 

D-9, E-19, E-20, E-21, H-8. 
Indication, 

Labor Inefficiencies, C-5, F-1, F-10, G-3, G— 7, G-9. 

Management Inefficiencies, C-5, F-1, F-10, G-3, G-7, 
G^9. 
Inefficiencies of 

Labor Indicated, C-5, F-1, F-10, G-3, G-7, G-9. 

Management Indicated, C-5, F-1, F-10, G-3, G-7, G-9. 
Information, 

Advertising, Use of, D-1, D-5, D-10. 

Product Sales, D-10. 

Sales, Use of, D-1, D-5, D-6, D-10. 
Instructions, Standard, B-8, C-11, E-7, E-16. 
Insurance, 

Compensation, H-7. 

Cost Reduced, E-4, G-8. 

Liability, H-7. 
Inventories, 

Decreased, A-2, F-2, F-7, F-10, H-5. 

Reduced, A-2, E-11. 
Investment, 

Quicker Turnover, A-2, B-11, E-11, E-22. 

Reduced, A-1, C-5, E-22. 
Investments, 

Planning Future, C-15. 

Safeguarded, C-14. 
Invoicing Improved, C-1. 

Job Progress, F-6, F-9, H-6. 

Labor, 

Agitation Prevention, E-9, G-8, G-9, G-12, G-13. 

Control, F-6, H-7. 

Cooperation among, G— 5, G-8, G-9. 

Cost Reduced, A-6, E-10, E-13, E-16, F-1, F-6, F-8, 

F-9, F-10, G-2, G-5, G-6, G-10. 
Cost, Accounting, C-7, F-10, H-6. 
Education, B-8, E-1, E-2, E-3, E-9, E-18, G-2, 

G-3, G-4, G-6, G-8, G-10, G-14. 
Employment Improved, E-15, F-8, G-1, G-2, G-4, 

G-6, G-10, G-11. 
Encouragement, A-1, B-12, E-8, E-11, E-13, E-18, 

G-13. 
Fair Judgment, C-7, E-1, F-10, G-1, G-2, G-3, G-5, 

G-6, G-10, G-11. 

23 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Higher Grade, F-8, F-10, G-3, G-4, G-6, G-7, G-8, 

G-9, G-12, G-13, G-14. 
Hiring Cost Reduced, E-10, G-6. 

Inefficiencies Indicated, C-5, F-1, F-10, G-3, G-7, G-9. 
Policies, A-6, H-7. 
Proper Incentives for, A-6, C-6, E-7, E-14, F-1, G-2, 

G-3, G-5, G-7, G-9, G-11, G-13, G-14. 
Training, B-8, E-1, E-2, E-3, E-9, E-18, G-2, G-3, 

G-4, G-6, G-8, G-10, G-14. 
Turnover Reduced, E-9, E-10, E-22, F-10, G-1, G-2, 

G-3, G-4, G-5, G-6, G-7, G-8, G-9, G-10, -G-13, 

G-14, H-1, H-7. 
Wage Rates, C-7, C-16, F-10, G-1, G-2, G-3, G-6, 

G-9, G-10, H-6, H-7. 
Working, Conditions, A-1, C-5, C-10, E-4, E-9, E-11, 

E-15, G-9, G-13. 
Less Partly Finished Orders, A-2. 
Liability Insurance, H-7, 
Literature and Follow-up, Sales, H-8. 
Longer Life, 

Equipment, E-1, E-5, E-6, E-8, F-5. 
Power Plant, E-6. 
Losses 

Analysis of, C-6, H-3, H-5, H-8. 

Idleness of Men and Machines, B-11, C-5, E-1, E-5, 

E-6, E-8, E-U, E-15, E-16, E-21, F-4, F-6, F-7, 

F— 8 F— 9 C— 8 H— 6 
Material Reduced, A-2, C-6, E-2, E-4, E-7, E-11, 

E-13, E-15, E-20, E-21, F-2, F-3, F-4, F-6, F-7, 

G-2, G-9, G-i3, H-3, H-5. 
Tool, Reduced, E-2, F-5. 

Machine Rates Standardized, C-12. 

Machines, Losses through Idleness, B-11, C-5, E-1, E-5, 
E-6, E-8, E-11, E-15, E-16, E-21, F-4, F-6, F-7, 
F-8, F-9, G-8, H-6. 
Maintenance, 

Equipment Anticipated, E-5, H-4. 

Equipment, Cost Reduced, E-1, E-3, E-5, E-6, E-S, 

E-15, F-5, H-4. 
Power Plant, Reduction, E-6. 
Management, 

Better Records, A-3, B-5, E-9, F-9, F-10. 

Coordination of, B-1, B-3, B-8, C-11, C-14, D-8, 

E-2, E-3, E-9, E-22, F-1, F-4, F-5, F-6, F-7, F-8, 

F-9, F-10, G-2, G-3, G-4, G-5, G-6, G-7, G-8, 

G-9, G-12, G-13, G-14, H-1, H-7. 

Future Policies of, B-12, B-13, C-4, D-6, F-9, F-10. 

24 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Inefficiencies Indicated, C-5, F-1, F-10, G-3, G-7, G-9. 
More Effective, A-3, A-5, B-1, B-2, B-3, B-5, B-10, 

B-13, C-4, C-7, C-10, E-9, E-12, E-17, E-19, F-3, 

F-6, F-8, F-9, F-10, G-1, H-1. 
Market for Product, Expansion of, D-1, D-4, D-6, D-7, 

D-9, D-10, D-11, E-12, E-13, E-15, E-17, E-19, 

E-20, E-21, H-8. 
Markets, Export, D-11. 
Material, 

Control, C-9, E-4, E-5, E-11, E-14, E-20, E-22, F-2, 

F-3, F-6, F-7, H-5. 
Cost Reduced, E-2, F-7, H-5. 

Handling Improvement, E-4, E-7, E-11, F-2, G-2, 

G-4, G-5, G-7, G-9, G-14, H-6. 
In-Process, Quicker Turnover, E-4. 
Losses Reduced, A-2, C-6, E-2, E-4, E-7, E-11, E-13, 

E-15, E-20, E-21, F-2, F-3, F-4, F-6, F-7, G-2, 

G-9, G-13, H-3, H-5. 
Salvaged, A-1, C-9, E-7, E-11, E-13, H-3. 
Specifications, E-20, F-7, H-5. 
Standardized, E-11, E-15, E-17, F-10, H-3. 
Tests, F-7, H-5. 
Valuations, C-9, F-2. 
Measurement, 

Executives, Basis for, B-4, C-2, C-3, C-16, E-13, 

E-14, F-8, F-10, G-7, G-9, G-14, H-1. 
Personnel, Basis for A-6, B-3, B-8, B-9, B-U, C-6, 

C-7, E-15, E-18, F-1, F-10, G-1, G-2, G-3, G-4, 

G-6, G-10, G-11, G-14, H-1. 
Men, Losses through Idleness, B-11, C-5, E-1, E-5, 

E-6, E-8, E-11, E-15, E-16, E-21, F-4, F-6, F-7, 

F-8, F-9, G-8, H-6, 
Methods, 

Improved, C-10, C-13, C-14, E-1, E-2, E-7, E-14, 

E-15, E-17, E-22, F-1, F-2, F-10, G-2, G-4, G-5, 

G-7, G-9, G-10, G-14, H-2, H-3. 
Unproductive, A-7, B-3, B-10, B-12, C-10, D-2, E-11, 

H-4. 

Money Saved, A-1, A-3, A-4, A-5, A-6, A-7, B-2, C-10, 
C-12, E-6, E-11, E-15. 

More Effective Management, A-3, A-5, B-1, B-2, B-3, 
B-5, B-10, B-13, C-4, C-7, C-10, E-9, E-12, E-17, 
E-19, F-3, F-6, F-8, F-9, F-10, G-1, H-1. 

New Lines Products, C-5, D-1, D-4, D.-9, E-12, H-4, 
H-8. 

Office Employees, Education, B-8, C-11. 

25 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Operation, 

Sequence, F-4, F-6, F-8, F-9, F-10. 

Time Reduction, F-5, F-6. 
Operations, 

Balanced, A-3, D-6, E-5, F-1, F-4, F-6, G-6. 

Standardized, E-3. 
Opportunity for Specilization, A-5, B-10, B-11, C-11, 

E-16, H-1. 
Orders, 

Less Partly Finished, A-2. 

Proper Sequence, D-8, F-7. 
Organization, 

Charts, B-3, H-1. 

Concentration of Responsibility, B-10, H-1. 

Departmentalized, H-1, H-2. 

Duties, B-3, H-1. 

Permanency, B-11. 

Policies, H-4, H-7, H-8. 

Vacancies Filled, B-3, B-8, C-11. 

Written Instructions, H-1. 
Overhead, 

Distribution of, A-3. 

Distribution, Basis, C-7, C-12, H-2. 
Overheads, Reduction of, A-3, A-5, C-2, C-10, D-9, D-11, 

E-8, E-16, E-22, F-9, F-10, G-6, H-1. 
Overtime, Reduced, F-8, F-9, F-10, G-6. 

Partly Finished Orders, Less, A-2. 
Payroll Records, C-7, H-6. 
Permanency, Organization, B-11. 
Personnel, 

Basis for Measurement of, A-4, A-6, B-3, B-8, B-9, 
B-11, C-6, C-7, E-15, E-18, F-1, F-10, G-1, G-2, 
G-3, G-4, G-6, G-10, G-11, G-14, H-1. 

Economies in Use of, A-5, E-9. 
Planning Future Investments, C-15. 
Plant Unused Capacity Reduced, D-1, D-6, D-9, D-11, 

E-1, E-4, E-9, E-11, F-2, F-10, H-4. 
Policies, 

Financial, H-2. 

Labor, A-6, H-7. 

Management, Future, B-12, B-13, C-4, D-6, F-9, F-10. 

Organization, H-4, H-7, H-8. 

Sales, Future, D-6, H-8. 
Power Generation, Reduced Cost, E-6. 
Power Plant, 

Longer Life of, E-6. 

Reduction in Maintenance, E-6. 

26 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Preparation, 

Records, Economical, B-6, C-13. 
Statements, Economical, B-6, C-13. 
Preventing Labor Agitation, E-9, G-8, G-9, G-12, G-13. 
Price, 
Adjustments, B-11, C-1, D-1, D-2, D-3, D-4, D-5, 

D-6, p-7, H-8. 
Competition, D-5, D-11. 
Establishment, Sales, B-4, B-11, C-1, C-12, C-16, 

D-2, D-5, D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 
Estimating Sales, B-4, B-11, C-1, C-12, C-16, D-2, 

D-5, D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 
Improved Estimating, B-4, C-1, C-12, C-16, D-2, 

D-5, D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 
Reduction in, B-11, D-5, D-11, E-21. 
Procedures, Credit and Collection, H-2. 
Processes 

Improved, C-10, C-14, E-1, E-2, E-7, E-14, E-15, 

E-17, E-22, F-1, F-2, F-10, G-2, G-4, G-5, G-7, 

G-9, G-10, G-14, H-2, H-3. 
Standardized, E-15, E-17, F-10, G-10. 
Product, 

Design, Simplification, D-5, E-19. 

Expansion of Market for, D-1, D-4, D-6, D-7, D-9, 

D-10, D-11, E-12, E-13, E-15, E-17, E-19, E-20, 

F— 21 H— 8 
Improved, C-6, D-3, D-4, D-9, D-10, E-7, E-9, E-11, 

E-12, E-15, E-16, E-17, E-18, E-19, E-20, E-21, 

F-5, F-10, G-2, G-4, G-5, G-7, G-9, G-11, G-14, H-3. 
Improved Inspection, E-16, E-18, E-19, E-20, E-21, 

F-2, F-3, F-4, F-6, F-7, H-3. 
Sales , Information on, D-10. 
Specification, H-3, 

Standardized, E-17, F-10, H-3, H-8. 
Production, 
Control, E-4, E-7, E-8, E-9, E-10, E-11, E-14, E-16, 

E-20, E-22, F-1, F-2, F-4, F-6, F-7, F-8, F-9, F-10, 

G-6, G-10, H-2, H-6. 
Cost Reduced, A-5, B-11, C-16, D-2, D-8, D-9, E-2, 

E-3, E-4, E-5, E-6, E-9, E-10, E-11, E-12, E-13, 

E-15, E-16, E-18, E-19, E-21, E-22, F-3, F-4, F-5, 

F-6, F-7, F-8, F-9, F-10, G-2, G-5, G-6, G-7, G-9, 

G-10, G-13, H-5, H-6. 
Data, Sales, D-1, D-2, F-10. 
Economies, A-5, A-6, A-7, B-2, B-11, C-10, C-11, 

D-8, D-9, E-1, E-2, E-3, E-4, E-7, E-11, E-12, 

E-14, E-15, E-16, E-17, E-20, E-22, F-6, F-9, 

F-10, H-3, H-6. 



27 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Fluctuations, Reducing, B-11, C-1, C-4. 

Increased, B-11, E-1, E-3, E-9, E-10, E-11, E-15, 
E-21, E-22, F-1 F-10, G-2, G-5, G-8, G-9, G-11, 
G-13, H-6. 
Products, 

New Lines, C-5, D-1, D-4, D-9, E-12, H-4, H-8. 

Unprofitable, Reduced, D-3, D-7, H-3. 
Profit and Loss Statements, F-2, H-2. 
Progress of Jobs, F-6, F-9, H-6. 
Proper, 

Employment Records, H-7. 

Estimating, E-14. 

Incentives for Labor, C-6, E-7, E-14, F-1, G-2, G-3, 
G-5, G-7, G-9, G-11, G-13, G-14. 

Sequence of Operations, F-6, F-8, F-9, F-10. 

Sequence of Orders, D-8, F-7. 
Publication, Cost, B-7. 
Purchasing, 

Economical, A-2, A-4, B-11, C-9,E-11 E-19, E-20, 
E-21, F-2, F-3, F-7, F-9, F-10 H-3, H-4. 

Equipment, Economical, F-9, H-4. 

Qu ck Use of Statements, B-6, B-7, B-13. 

Quicker Turnover on Investment, A-2, B-11, E-11, E-22. 

Rates, Standardized Machine, C-12, F-1. 
Recieving Expense Reduced, H-5. 
Records, 

Accurat , C-11, C-14 ,C-15, H-2. 

Better Management, A-3, B-5, E-9, F-9, F-10. 

Economical Preparation of, B-6, C-1 3. 

Effective, B-7, C-2 C-16. 

Employment, Proper, H-7. 

Financial, H-2. 

Payroll, C-7, H-6. 

Simplification of, B-7, B-13. 

Use of, C-10. 
Reduced, 

Accidents, E-4, E-8, E-9, E-11, E-15, E-22, G-8, H-7 

Cost of Equipment Maintenance, E-1, E-3, E-5, E-6, 
E-8, E-15, F-5, H-4. 

Cost of Power Generation, E-6, 

Cost of Production, A-5, B-11, C-16, D-2, D-8, D-9, 
E-2, E-3, E-4, E-5, E-6, E-9, E-10, E-11, E-12, 
E-13, E-15, E-16, E-18, E-19, E-21, E-22, F-3, F-4, 
F-5, F-6, F-7, F-8, F-9, F-10, G-2, G-5, G-6, G-7, 
G-9, G-10, G-13, H-5, H-6. 

Executive Detail, F-10. 

Fire Hazard, E-11, E-15, E-22. 

28 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Fuel Cost, E-6. 

Inventories, A-2, E-11. 

Insurance Cost, E-4, G-8. 

Investment, A-1, C-5, E-22. 

Labor Cost, A-6, E-10, E-13, E-16, F-1, F-6, F-8, 

F-9, F-10, G-2, G-5, G-6, G-10. 
Labor Hiring Cost, E-10, G-6. 

Labor Turnover, E-9, E-10, E-22, F-10, G-1, G-2, G-3, 
G-4, G-5, G-6, G-7, G-8, G-9, G-10, G-13, G-14, 
H-1, H-7. 
Material Cost, E-2, F-7, H-5. 

Material Losses, A-2, C-6, E-2, E-4, E-7, E-11, E-13, 
E-15, E-20, E-21, F-2, F-3, F-4, F-6, F-7, G-2, 
G-9, G-13, H-3, H-5. 
Operation Time, F-5, F-6. 
Overtime, F-8, F-9, F-10, G-6. 
Receiving Expense, H-5. 
Rejections, C-6, E-7, E-9, E-15, E-16, E-19, E-20, 

E-21. F-3, H-3. 
Shrinkage, E-11, E-13, F-7. 

Spoilage, E-11, E-13, E-21, F-2, F-3, F-6, H-3, H-5. 
Storage Requirements, A-2, E-4, F-2, F-5, F-7, H-5. 
Tool Cost, E-2, E-8, E-15, E-18, F-S. 
Tool Losses, E-2, F-5. 
Tool Stores, F-5. 

Unprofitable Products, D-3, D-7, H-3. 
Unused Capacity, Plant, D-1, D-6, D-9, D-11, E-1, 

E-4, E-9, E-11, F-2, F-10, H-4. 
Wastage, A-2, C-6, E-2, E-4, E-7, E-11, E-13, E-15, 
E-20, E-21, F-2, F-3, F-6, F-7, G-2, G-9, G-13, 
H-3, H-5. 
Work in Process, F-6, F-8, F-9. F-10, H-6. 
Reducing, 

Cancellations, F-9. 

Production Fluctuations, B-11, C-1. C-4. 
Returned Goods, E-19. 
Reduction. 
Expenses, B-4, C-2, C-3, C-15. 
Overheads, A-3, A-5, C-2, C-10, D-9, D-11, E-8, 

E-16, E-22, F-9, F-10, G-6, H-1. 
Power Plant Maintenance, E-6. 
Price, B-11, D-5, D-11, E-21. 
Sales Expense, D-9, H-8. 
Reductions in Equipment Set-up Time, F-4. 
Rejections, Reduced, C-6, E-7, E-9, E-15, E-16, E-19, 

E-20, E-21, F-3, H-3. 
Rent Saved, A-1, C-5, E-4, E-8, E-9. E-11, F-2. 
Reorganization, Financial. C-1 4. 

29 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Requirements, Storage, Reduce, A-2, E-4, F-2, F-5, 

F-7, H-5. 
Research Department, B-13, E-12. 
Returned Goods, Reducing, E-19. 
Routing, Improved, C-12, E-14, F-1, F-4, F-8, F-10, 

H-4, H-5, H-6. 
Safeguarded Investments, C-14. 

Analysis of Effort, D-1, D-4, D-7. 

Application of Effort, D-1, D-2, D-3. 

Arguments, Additional, D-1, D-2, D-10. 

Concentration of Effort, D-3, D-4, D-5, D-6, D-10. 

Data, Production, D-1, D-2, F-10. 

Expense, Reduction, D-9, H-8. 

Increasing, B-11, B-13, D-1, D-2, D-5, D-7, D-8, 
D-9, E-19, E-20, E-21, H-8. 

Information of Product, D-10. 

Information, Use of, D-1, D-5, D-6, D-10. 

Literature and Follow-up, H-8. 

Policies, Future, D-6, H-8. 

Price, Establishment, B-4, B-11, C-1, C-12, C-16, 
D-2, D-5, D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 

Price, Estimating, B-4, B-11, C-1, C-12, C-16, D-2, 
D-5, D-7, F-1, F-4, F-7, G-1, G-2, H-2, H-8. 
Salesmen, Better Assignments, D-4. 
Salvaged Material, A-1, C-9, E-7, E-U, E-13, H-3. 
Saved, 

Money, A-1, A-3, A-4, A-5, A-6, A-7, B-2, C-10, 
C-12, E-6, E-11, E-15. 

Rent, A-1, C-5, E-4, E-8, E-9, E-11, F-2. 

Space, A-1, C-5, E-8, F-2. 
Scrapping of Equipment, C-8. 
Sequence of Operation, F-4, F-6, F-8, F-9, F-10. 
Service, Tools, Better, E-8, F-4, F-5, F-6, H-4. 
Set-up Time Reductions, Equipment, F-4. 
Shipping Improved, H-4. 
Shrinkage Reduced, E-U, E-13, F-7. 
Simplification, 

Cost, C-3, C-13, F-1, F-3, F-10, H-6. 

Product Design, D-5, E-19. 

Records, B-7, B-13. 

Statements, B-7, B-13. 
Space Saved, A-1, C-5, E-8, F-2. 
Specialization, Opportunity for, A-5, B-10, B-11, C-11, 

E-16, H-1. 
Specification, 

Materials, E-20, F-7, H-5. 

Product, H-3. 

30 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Spoilage Reduced, E-11, E-13, E-21, F-2, F-3, F-6, H-3, 
H-5. 

Staff Conferences, H-1. 
Standard, 

Burden Rates, B-1. 

Instructions, B-8, C-11, E-7, E-16. 
Standardized, 

Buildings, H-4. 

Equipment, E-1, E-15, E-17, F-10, H-4. 

Expense, C-1, C-2. 

Machine Rates, C-12, F-1. 

Material, E-11, E-15, E-17, F-10, H-3. 

Operations, E-3. 

Processes, E-15, E-17, F-10, G-10. 

Product, E-17, F-10, H-3, H-8. 

Tools, E-2, E-15, E-17, F-10, H-4. 
Statements, 

Departrnental, H-2. 

Economical Preparation of, B-6, C-13. 

Financial and Burden, C-4. 

Improved Compilation, B-6, B-7. 

Profit and Loss, F-2, H-2. 

Quick Use of, B-6, B-7, B-13. 

Simplification of, B-7, B-13. 
Storage Requirements Reduced, A-2, E-4, F-2, F-5, F-7, 

H-5 
Stores, Tool, Reduced, F-5. 

Strength, Greater Competitive, B-13, D-7, D-8, D-11, 
E-22. 

Test of Material, F-7, H-5. 
Tool, 

Cost Reduced, E-2, E-8, E-15, E-18, F-5. 

Losses Reduced, E-2, F-5. 

Stores Reduced, F-5. 
Tools, 

Better Service, E-8, F-4, F-5, F-6, H-4. 

Improvement in, E-2, E-7, F-5, G-2, G-4, G-5, G-7, 
G-9, G-14, H-4. 

Standardized, E-2, E-15, E-17, F-10, H-4. 
Trade's Good Will, Improve, D-3, D-8, F-10. 
Training, Labor, B-8, E-1, E-2, E-3, E-9, E-18, G-2, G-3, 

G-4, G-6, G-8, G-10, G-14. 
Turnover, 

Investment, Quicker, A-2, B-11 E-11, E-22. 

Material-in- Process, Quicker, B-11, E-4. 

Unnecessary Effort Eliminated, B-8, B-9, C-10, C-U 
C-13, D-7, D-8, H-1. 

31 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Unproductive Methods, A-7, B-3, B-10, B-12, C-10, D-2, 

E-11, H-4. 
Unprofitable Products Reduced, D-3, D-7, H-3. 
Use, 

Advertising Information, D-1, D-5, D-10. 

Capacity, Effective, F-5, F-6. 

Cost, C-3, C-4, C-13, H-2. 

Personnel, Economies, in, E-9. 

Records, C-10. 

Sales Information, D-1, D-5, D-6, D-10. 

Statements, Quick, B-6, B-7, B-13. 

Vacancies Filled in Organization, B-3, B-8, C-11. 
Valuations of Material, C-9, F-2. 

Wage Rates, Labor, C-7, C-16, F-10, G-1, G-2, G-3, 

G-6, G-9, G-10, H-6, H-7. 
Wastage Reduced, A-2, C-6, E-2, E-4, E-7, E-11, E-13, 

E-15, E-20, E-21, F-2, F-3, F-6, F-7, G-2, G-9, 

G-13, H-3, H-5. 
Working Conditions, Labor, A-1, C-5, C-10, E-4, E-9, 

E-11, E-15, G-9, G-13 . 
Work-in- Process Reduced, F-6, F-8, F-9, F-10, H-6 
Written Instruction, Organization, H-1. 



32 



Numerical Index of Service 
Divisions 



A Conservation and Maintenance of Finance 37 

A 1. Salvage Surplus Materials 37 

A 2. Reduce Inventories and Requirements .... 37 

A 3, Equalize and Budget Burdens 38 

A 4, Institute Departmental Economies 38 

A 5. Concentrate Managerial Personnel 39 

A 6. Stimulate Labor Savings 40 

A 7. Eliminate Unproductive Methods 40 

B Managerial Control 43 

B 1. Provide Executive Conference Plans.... 43 

B 2. Create Betterment and Staff Departments . 43 

B 3. Develop Organization Charts and Write-ups 44 

B 4. Budget Plant Expenditures 46 

B 5. Establish Controllerships 47 

B 6. Organize Statistical Department 48 

B 7. Prepare Graphical Statistics & Statements 49 

B 8. Graph Procedures and Methods 49 

B 9. Strengthen Executive Personnel 51 

B 10. Institute Works Managerships 51 

B 11. Stabilize Production 52 

B 12. Outline Future Program 53 

B 13. Install Economic Research Department . . 54 

C Accounting Control 57 

C 1. Determine Standard Overhead Rates .... 57 

C 2. Develop Codes of Standing Expense Orders 58 

C 3. Merge Cost and General Accounting .... 59 

C 4. Provide Burden and Financial Statements. 60 

C 5. Establish Idleness Records 61 

C 6. Analyze Rejections 62 

C 7. Install Labor Accounting Methods 63 

C 8. Create Equipment Inventories 64 

C 9. Take Material Inventories 65 

C 10. Devise Improved Office Procedure 66 

C 11. Write up Standard Practice 67 

C 12. Set Machine Rates 68 

C 13, Modernize General & Cost Accounting 

Methods 69 

C 14. Audit General and Cost Accounts 70 

C 15. Develop Control Accounts 70 

C 16. Outline Basis for Unit Costs 71 

33 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



D Sales Control 73 

D 1. Determine Unexploited Sales Possibilities. 73 

D 2. Capitalize Undeveloped Profit-Making 

Possibilities 74 

D 3. Locate Unprofitable Lines 75 

D 4. Reduce Lost Sales 76 

D 5. Adjust Prices 77 

D 6. Coordinate Sales Effort with Factory Con- 
ditions 78 

D 7. Predetermine Selling Price and Costs 79 

D 8. Improve Deliveries 80 

D 9. Develop New Lines 81 

D 10. Apply Unused Publicity Factors 82 

D 11, Ascertain Export Possibilities 83 

E Technical Control 85 

E 1. Standardize and Improve Use of Equipment 85 

E 2. Design and Use Standardized Cutting Tools 86 

E 3. Develop and Use Jigs and Fixtures 88 

E 4. Analyze and Rearrange Plant Layout .... 89 

E 5. Institute Anticipative Inspection and 

Maintenance 91 

E 6. Study Power, Generation and Transmission 92 

E 7. Apply Better Inspection 93 

E 8. Provide Proper Tool Rooms 94 

E 9. Create Best Working Conditions 95 

E 10. Outline Proper Use of Female and 

Common Labor 97 

E 11. Investigate Material Handling 98 

E 12. Organize Research and Experimental Work 99 

E 13. Ascertain Ey-Products 100 

E 14. Establish Time Study Campaigns 101 

E 15. Eliminate Operation Wa.?te3 103 

E 16. Prescribe Engineering and Drafting De- 
partment Procedure 104 

E 17. Stimulate Standardization 106 

E 18. Define Limits and Tolerances 107 

E 19. Adapt Best Product Design 108 

E 20. Define Material Specifications 108 

E 21. Install Chemical and Physical Laboratories 109 
E 22. Survey Plant Location, De;ign and Con- 
struction 110 

F Production Control 113 

F 1. Standardize Hourly Production Rates. . . .113 
F 2. Organize Material Storage, Records and 

Control 114 

34 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



F 3. Prepare Bills of Materials or Parts Lists. .115 

F 4. Provide Operation Analysis 116 

F 5. Develop Tool Analysis 117 

F 6. Refine Dispatching and Time Keeping .... 118 

F 7. Analyze Purchasing, Traffic and Receiving 120 

F 8. Institute Inventory of Hrs. of Labor Ahead. 121 

F 9. Establish Order Progress Records 122 

F 10. Install Graphical Planning and Scheduling 123 

G Personnel Control 127 

G 1. Determine Basic Wage Rates 127 

G 2. Install Incentives 128 

G 3. Establish Personnel Efficiency Records ... 130 
G 4. Cooperate on Education and Training. . . .131 

G 5. Present Graphics to Workers 132 

G 6. Organize Employment Department 133 

G 7. Capitalize Suggestions 135 

G 8, Institute Safety Campaign 136 

G 9. Arrange Employes' Committees and Re- 
presentation 137 

G 10. Prepare Job Analysis and Specification .... 139 

G 11. Prescribe Trade and Vocational Tests 140 

G 12 Study Insurance and Pension Plans 141 

G 13. Develop Stock Participation Possibilities . . 142 
G 14. Introduce Foremen's Clubs 143 

H Industrial Analyses 145 

H 1. Organization plan and Personnel Analysis. 145 
H 2. Financial and Accounting Procedure 

Analysis 146 

H 3. Product and Inspection Analysis 147 

H 4. Pant and Equipment Analysis 148 

H 5, Material Uie and Control Analysis 149 

H 6. Production and Cost Control Analysis . . . .150 
H 7. Labor Control and Maintenance Analysis. . 151 
H 8. Distribution Plans and Activities Analysis 151 



35 



A Conservation and Maintenance 
of Finance 

A 1. Salvage Surplus Materials 

Described as: 

SYSTEMATICALLY determining quantity of 
excess or surplus materials, amount of scrap, 
and number of repair parts not needed, and then 
converting as much of it as possible into money. 

Results Obtainable: 

a Actual money saved usable for productive 
purposes. 

b Reducton of investment for same amount 
of business done. 

c Saves space and rent, sometimes even ob- 
viating new rentals of space or building 
of additions. 

d Provides better working conditions because 
of 'house cleaning'. 

e Encourages all employes by example in 
cleanliness, orderliness and thrift. 

/ Promotes more care in purchasing or in put- 
ting doubtful material into process. 

A 2. Reduce Inventories and Requirements 

Described as: 

STUDYING carefully the manufacturing re- 
quirements of the business, to determine plans 
and policies covering the minimum quantities, 
amounts to order and maximums of the various 
kinds of material to carry, necessary to maintain 
a proper balance as between different kinds of 
materials, as well as an adequate supply of each 
kind required for regular manufacturing pur- 
poses. 

37 



WRAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a Increased turnover of investment. 

b Less unfinished order and lots. 

c Less money tied up in least required' ma- 
terials and those more easy to secure. 

d Better basis for economical purchase. 

e In case of discontinuance of line or obso- 
lescence, less loss through wastage. 

/ Less storage space required. 

A 3. Equalize and Budget Btu-dens 

Described as: 

SYSTEMATICALLY comparing and analyz- 
ing overhead expenses, with the aim in view 
of determining not only where reductions can 
be made, but what the safe working allowances 
for each class of expenditure should be, to be 
used in checking same against actual expendi- 
tures, and providing for statement of reasons 
for increases and decreases. 
Results Obtainable: 

a Money saved in overheads, each dollar a 
complete gain, because excessive ex- 
penditures are pointed out. 
b Operations are balanced because budget 
or allowance contemplates balanced ac- 
tivities. 
c Necessary reductions are made propor- 
tionate and not at expense of one or 
other department. 
d More enthusiastic and interested manage- 
ment with a goal to "shoot" at. 

A 4. Institute Departmental Economies 

Described as: 

ANALYZING the work of such departments 
as maintenance, tool, inspection, experi- 
mental, power, cost, planning, drafting, employ- 
es 



WHAT INDUSTRIAL ENGINEERING • INCLUDES 

ment, purchasing, stores and receiving, as the 
basis for determining what and where economies 
can be effected in the management and conduct 
of these departments. 
Results Obtainable: 

a Every dollar saved in these departments 
is one earned, provided activities remain 
just as effective. 
b Such departments are those whose actual 
value is hard to measure, and although 
service departments are absolutely nec- 
essary, unless checked up, much money 
can be wasted if not properly controlled. 
c Analysis often points out not only op- 
portunity for money savings, but also 
for better service and more effective 
procedures. 

A 5. Concentrate Managerial Personnel 

Described as: 

STUDYING the various divisions of the busi- 
ness, as to relationship, personnel and me- 
thods, with a view to consolidating, concentrat- 
ing, coordinating and reorganizing in such a 
manner as to carry on the business as efficiently 
as before with less executive and managerial 
personnel. 

Results Obtainable : 

a Possible savings in managerial salaries. 
h Possible better supervision with resultant 
savings in overhead, or more economical 
production. 
c More enthusiastic and interested manage- 
ment because such analysis often, for 
the first time, really outlines respon- 
sibility. 
d The opportunity for specialization often 
develops better executives. 

39 



WHAT INDUSTRIAL ENGINEERING ' INCLUDES 

A 6. Stimulate Labor Savings. 

Described as: 

DEVISING plans for locating inefficient em- 
ployes in shop and office, so as to safeguard 
those who are efficient, and then determining the 
most constructive policies covering transfers, 
promotions, divscharges, hours and wages as the 
conditions of the business may make necessary 
from time to time. 

Results Obtainable: 

a Inefficient employes are expensive and can 
be placed where they are more effective, 
with actual savings as the result. 

b Employes can often be trained in present 
positions to produce more economically. 

c Such analyses often bring to light expen- 
sive operators who in justice to them- 
selves and their employers both, should 
have opportunities for more effective 
service pointed out to them. 

d On the other hand, operators are sometimes 
found who consistently work better than 
all others and should be permitted to 
serve where they can bring greatest 
return to themselves and employers. 

A 7. Eliminate Unproductive Methods. 

Described as: 

ANALYZING all office procedure and me- 
thods, with the aim in view of eliminating 
"red tape", duplications and unnecessary 
steps, and placing the methods on the most 
efficient basis so as to secure all possible gains. 

Results Obtainable : 

a Besides actual savings in dollars and cents, 
such analyses often point out opportuni- 
ties for services to the directly producing 

40 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

divisions and their managements, which 
result in further economies. 
b Better workers are always the result of 
following procedures which are simple 
and direct. Few people really interest 
themselves in sluggish, confused and 
ponderous methods. 



41 



g Managerial Control 

B 1. Provide Executive Conference Plans 

Described as: 

FURNISHING a mechanism whereby execu- 
tives can periodically get together and, in a 
systematic and effective manner, coordinate the 
views of those who are charged with the respon- 
sibility of managing the business. 

Results Obtainable : 

a Develops coordinated management with 
all executives united in supporting 
various actions taken. 

h More intelligent management, because 
through conference, opinions from var- 
ious angles and viewpoints are secured. 

c More enthusiastic management, because 
of realization that each executive is 
really a part of the whole, and is contri- 
buting to various decisions. 

d Greater incentives for more interested and 
sound management, because of appeal 
to the best in each one when in compe- 
tition while in conferences. 

e More direct and effective management 
because once decisions are made in 
conference, definite action can be taken 
with no further arguments. 

B 2. Create Betterment or Staff 

Departments 

Described as: 

ORGANIZING a staff or betterment de- 
partment to study ways and means of 
doing things more efficiently ; to act in an investi- 
gative and advisory way; and to develop new 
practices and formulate improved procedures. 

43 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a A productive department whose gains are 
in each case money actually earned. 
Experience shows that no company ex- 
ists which does not offer opportunity for 
better management. 

b A basis for making studies and planning 
improvements, in complete detail, with- 
out hindering or disturbing necessary 
routine in carrying on current operations. 

c Usually managers have in mind possibili- 
ties for money savings or betterments 
but for lack of time are unable to take 
advantage of them. Staff departments 
provide means of immediately cashing 
in on such worth while possibilities. 

d Develops more cooperative and enthusias- 
tic management because it provides a 
means of investigating and studying 
from all angles and at a given time the 
worthiness of suggested improvements 
from all sources at once. 

e Encourages recommendations instead of 
allowing them to wait for months un- 
exploited and never to be repeated. 

B 3. Develop Organization Charts 

and Write-ups 

Described as: 

ANALYZING the different divisions of the 
business as to personnel and work done; 
observing where improvements can be made, 
and after securing approvals of revisions, pre- 
paring written outlines as to functions, duties 
and relationships, all of which information trans- 
ferred in condensed form to charts, pictures the 
organization both as a whole and as to its 
various divisions. 

44 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



Results Obtainable: 

a The analysis itself points out opportunities 
for better use of personnel existing, the 
elimination of inefficient personnel or 
that which is unnecessary, the elimina- 
tion of duplication of effort, those fea- 
tures and functions requiring more at- 
tention and effort, and any activities 
which are absolutely unessential. 

b More effective management, because each 
individual having work defined, under- 
stands relationship to others, as well as 
his own scope, and can approach his 
task directly with no fear of interfer- 
ence. 

c With each individual's responsibility out- 
lined, the result is the building of strong- 
er men in each position, because of the 
desire on their part to live up to these 
responsibilities. 

d There is also an incentive to do better 
work, because a goal is set and a line of 
promotion is therefore definitely out- 
lined. 

e There is less disruption in organizations be- 
cause of vacancies or absences since 
understudies can be designated, having 
definite instructions available covering 
positions to be filled, from which they 
can more quickly learn requirements. 

/ All vacancies can be filled more effectively, 
because with requirements of each posi- 
tion definitely outlined, individuals most 
suitable can be chosen, and with the 
use of these instructions can most 
quickly become familiar with new duties* 

45 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

B 4. Budget Planfs Expenditures 

Described as: 

STUDYING the business from the standpoint 
of the necessary expenditures of the various 
departments, as a basis for working up the 
budget allowance covering the normal require- 
ments, with provisions made for fluctuations 
due to changes in volume of business. 

Results Obtainable: 

a The very analysis often points out unneces- 
sary expenditures, or indicates un- 
balanced expenditures where one de- 
partment or division is spending all out 
of proportion to the others. 

b Points out way toward applying available 
funds where they can be most effective 
and can bring greatest returns. 

c Points out promptly, during depressions 
and when volume of business decreases, 
such items which are not being reduced 
in necessary proportions. 

d Offers fair basis for judgment of respon- 
sible executives since it provides stand- 
ards for them to go by. 

e Offers better basis for use in predetermin- 
ing costs and prices, with reasonable as- 
surance that estimates so made will be 
met. 

/ With current and usual expenditures pro- 
vided for through budget, the possi- 
bility and advisability of extra and un- 
usual items can more easily be deter- 
mined. 

46 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

B 5. Establish Controllerships 

Described as: 

STUDYING the financial side of the busi- 
ness, as a basis for separating those features 
which are purely financial from those which are 
purely managerial, such as statistics, auditing, 
standard practice (as to ofiice routine and cleri- 
cal methods), general and factory accounting, 
and financial statements, and putting the latter 
under a controller subordinate to the general 
management. 

Results Obtainable : 

a More effective management, because of 
establishing a function devoting itself 
entirely to the accumulation of man- 
agerial data, as well as that of checking 
up and accounting for all expenditures. 
By relieving executive management from 
these details, each function can be han- 
dled more satisfactorily. 

b By having all expenditures made by one 
group, checked and accounted for by 
distinctly another, a more acceptable 
and trustworthy accounting is provided. 

c More information is available for use by 
management, because a controller has 
ability, time and facilities for securing 
and compiling such data in useful form. 

d Management makes more use of data 
provided them from other sources, 
without any effort on their part, than 
they would if it were necessary for them 
to interrupt their own routine to secure 
it. 

e A controller is specially trained in his 
work which assures the benefits of spec- 
ialization. 

47 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

B 6. Organize Statistical Department 

Described as: 

DETERMINING those factors in the busi- 
ness about which there should be reHable 
data, arranging for securing same by proper 
mechanisms, and finally for its compilation and 
presentation by a properly organized statistical 
division. 

Results Obtainable : 

a This eliminates the compilation of 
considerable data which is unneces- 
sary, and insures the collection of such 
data as is useful. 

h Where this work is not concentrated and 
each division compiles its own "pet" 
information, there is much duplication, 
which is eliminated by a centralized 
statistical department, which can use 
the same basic data for all compilations, 
merely rearranging it for use by different 
individuals and divisions as required. 

c The compiling of statistics is a study in 
itself. By centralizing this work, it is 
possible to use highly specialized talent 
with the result that data is more satis- 
factorily compiled and presented. 

d Through study of this work more simpli- 
fied presentation will result, insuring 
more effective use of the data. 

e Being relieved of this detail, operating de- 
partments can concentrate more time 
upon effective use of the data in current 
management. 

48 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

B 7 Prepare Graphical Statistics and 
Statements for Executives. 

Described as: 

DETERMINING the pertinent and essen- 
tial statistics which the executive requires; 
analyzing the financial and other statements 
for the salient features, and then arranging for 
weekly and monthly graphic presentations for 
executive use and study. 

Results Obtainable : 

a Makes more effective use of data, because 
of simplified presentations. 

h Provides opportunity for very rapid and 
simple comparisons, which cannot so 
easily be read from tabulated figures. 

c Indicates relationships in a way which can 
be secured in no other manner. 

d Provides opportunity for publication of 
data, without divulging dollars and 
cents or other significant figures. 

e Through use of various colors, lines and in- 
genious devices, the mind is forced to 
"stop, look and listen" at danger signs. 

/ Provides opportunity for quickly and em- 
phatically pointing out danger signs. 

B S. Graph Procedures and Methods 

Described as: 

ANALYZING the procedures and methods 
in operation; determining those which are 
not important from the standpoint of use by or 
affecting executives, and arranging to reduce 
such procedures and methods to graphic form, 
placing them in convenient shape for accessi- 
bility and rapid reference. 

49 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a Analysis itself points out opportunities 
for reducing duplication of effort, par- 
ticularly complicated procedures which 
can be simplified, eliminations of 
forms, opportunities for combining two 
or more forms into one, and in some 
cases, elimination of extra copies. 

b After procedures have been improved, the 
provision of definite standard instruc- 
tions in simple form will insure their 
being followed more efficiently. 

c Through being well defined, all arguments 
and questions can be more quickly 
settled regarding proper procedures. 

d Procedures and forms become more ef- 
fective when definitely outlined, because 
with little or no opportunity for change, 
working constantly along certain de- 
finite lines, individuals involved can 
carry out and use these methods more 
efficiently. 

e Vacancies in organization can be filled 
more satisfactorily, because with pro- 
cedures and methods outlined, parti- 
cularly qualified individuals can be se- 
lected for vacant positions. 

/ Newcomers in the organization, by being 
provided with simple graphical de- 
scriptions of procedures and methods, 
can become familiar with their new 
duties much more quickly. 

50 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

B 9. Strengthen Executive Personnel 

Described as: 

STUDYING the executive personnel through 
analysis of the work performed, also through 
interviews with officials, through questionaires, 
through tests and observational character an- 
alysis, if desired, to determine illogical func- 
tioning, faulty relationships and evidences of 
too many, or not enough, duties. 

Results Obtainable : 

a It is recognized that some men are qualified 
to fill certain positions better than 
others. This analysis aims to place each 
man in that position which he can most 
effectively fill. 

h It eliminates certain functions which may 
be found absolutely unnecessary for ef- 
fective operation. 

c It emphasizes the need and brings to bear 
more concentrated effort on such func- 
tions as require particular attention. 

d A better distribution of the work is pro- 
vided, reducing the load where indi- 
viduals are attempting to carry too 
much, thus making them more efficient, 
and distributing these extra responsi- 
bilities to such individuals who are not 
handling sufficient to keep them busy, 
thereby making them more contented 
and happy. 

B 10. Institute Works Managerships 

Described as: 

STUDYING existing conditions as to manner 
of directing plant activities, ascertaining 
nature of present organization in charge of 

51 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

managing operating departments, determining 
faults and weaknesses, and with the above as a 
basis, outlining ways and means for the better 
conduct of the plant, placing same under a 
single head — a works manager — after prescribing 
his functions, relationships and duties. 

Results Obtainable: 

a Concentrates under one head all respon- 
sibility for plant and works' operations, 
insuring more effective management. 

b Through such concentration, it is possible 
to secure better qualified talent, which 
can specialize and therefore more ef- 
fectively manage. 

c It is recognized that works management is 
a field in itself, for one man's entire 
effort, and by providing such concen- 
trated responsibility most effective 
management is assured. 

d This work requires men with peculiar 
personal attributes and abilities and 
when so arranged for, such concentra- 
tion permits the use of talent peculiarly 
qualified to meet the requirements. 

e Through concentrating all plant functions 
under one head, the analysis points out 
any unnecessary functions as well as 
any neglected ones, and makes it pos- 
sible to concentrate on those which 
are most important. 

B II Stabilize Production 

Described as: 

ASCERTAINING the periodic .high and low 
peaks in production and sales for a period 
of years; determining reasons for the fluctuations 
in production, as accurately as possible, investi- 

52 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

gating as regards the various things which might 
be done to eliminate the excessively high and 
low points, with due consideration to the mat- 
ter of advance orders, storage and financing; 
and working out a program for greater uniform- 
ity in balance and flow of production. 

Results Obtainable : 

a More balanced production results in great- 
er production and lower costs. 

h Eliminates expensive idleness of machines, 
men and plant capacities. 

c Allows the development of a permanent 
organization of loyal, satisfied workers 
employed the year round. 

d Reduces the use of inefficient floaters, each 
attempting to make a job last as long as 
possible. 

e OfTers opportunity for developing 
highly specialized equipment and pro- 
cesses, because investment can be kept 
busier, the year round. 

/ Offers opportunity for greater volume, 
because with all capacity used constant- 
ly on normal basis, costs are lower and 
therefore prices which will secure volume 
of sales, can be established. 

g Insures a more economical turnover of 
money invested in materials-in-process. 

h Offers opportunity for more economical 
purchase of material, in proper lots for 
steady and regular consumption. 

B 12. Outline Future Program 

Described as: 

ANALYZING the present conditions in 
selling, financing, engineering, and in 
manufacturing, with due thought to the past 
successes and failures, as a basis for determining 

53 



WHAT INDUSTRIAL ENGINEERING INCLUDE S 

the likely developments and progress of the fu- 
ture, which can serve to indicate the elements 
to be considered and to determine the tentative 
plan of action. 

Results Obtainable : 

a Provides an objective for all concerned in 
the organization, with more effective ac- 
complishment as a result. 
b Assures concentrated and definite activi- 
ties, eliminating many haphazard and 
more or less ineffective operations. 

c Broadens interest of all concerned, because 
future possibilities point the way for 
further promotions and effectiveness. 

d By anticipating obstacles they can more 
easily be overcome, and by analyzing 
future requirements, many mistakes 
can be avoided. 

B 13. Install Economic Research 

Departments. 

Described as: 

STUDYING the nature and needs of the 
business and determining the kind of in- 
formation which would serve to advantage in 
enabling the management to plan future actions, 
ascertaining sources of such information, and 
arranging for its collection, compilation and use 
by executives. 

Results Obtainable: 

a Besides technical and statistical knowledge, 
management can often use and should 
be provided with information regarding 
general economics of industry in the 
country, outside of their own plant. 
An Economic Research Department 

54 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

provides a mechanism for securing, 
compiling and presenting such data for 
use by executives. 

b Proper knowledge regarding trade, market 
and labor conditions, new mechanical 
developments in industry as a whole 
and in each specialized industry, enables 
each executive to make more intelligent 
decisions and plan more effectually for 
the future. 

c Develops proper executive management 
because the study of these features 
broadens the individual. 

d Many opportunities for development of 
the given industry are pointed out, and 
can be taken advantage of through study 
of this information. 

e The activities of competitors can be watch- 
ed, to a certain extent at least, and any 
inroads prevented. 
/ Many lessons can be learned from industries 
not exactly the same, but having similar 
problems. 



55 



C Accounting Control 

C 1 . Determine Standard Burden Rates 

Described as: 

SETTING up standard burden rates by de- 
partments or class of equipment, based on the 
normal operating capacity of department or 
class of equipment, which will serve as a basis for 
comparing actual burden costs, and assisting in 
reconciling the differences, due to operating at 
greater or less than normal capacity, and also for 
setting current prices. 

Results Obtainable : 

a Through current comparisons any wide 
fluctuations of actual from standard 
burdens can be noted and investigated, 
and the recurrence in many cases pre- 
vented. ^ 

h By reflecting normal operating capacity 
and conditions in standard burdens with 
such burdens being used for setting 
prices, a price basis is established which 
will secure business in such volume as 
will most effectually attain and main- 
tain the much desired normal conditions. 

c When prices are set on a basis of actual 
burdens during previous periods, they 
are apt to be very inaccurate because 
present and future conditions are not 
anticipated. Standard burden rates 
do make some prophecy and therefore 
establish price estimates with more 
accuracy. 

d Prices are usually fixed during the month. 
If actual burdens are used, pricing and 
billing is delayed until the end of the 

57 



WHAT INDUSTRIAL ENGINEERING ^INCLUDES 

month, when such actual burdens can 
be compiled and where charges overlap 
from month to month, which results in 
added confusion. Standard burden 
rates obviate this also. 

C 2. Develop Codes of Standing 

Expense Orders 

Described as: 

ARRANGING for the development of a 
logical code of expense orders, by depart- 
ments, and kinds of expenditures, properly clas- 
sifying such expenses, and providing a proper 
system of numbering and finally arranging for 
their presentation in statement or other con- 
venient form for quick and ready reference. 

Results Obtainable : 

a Assures each item of burden or expense 
being charged to the same account in 
every single case, eliminating all hesi- 
tance, arguments and discussions as to 
where it belongs. 

b Provides basis for effective comparisons, 
pointing out accurately all variations 
and fluctuations. 

c By studying analysis of such statements, 
wide increases can be immediately noted 
and investigated. 

d Study and use of information tabulated 
in such codes of accounts, usually re- 
sults in actual reductions in overheads. 
With all expenses of a given nature 
always charged to the same account, and 
so tabulated, a better and more intelli- 
gent judgment of operations is insured 
every executive , or department head and 
sub-executive. 

58 



WHAT INDUST RIAL ENGINEERING INCLUDES 

e After such items have been classified and 
tabulated for some time, standards can 
be set up for each one, as a basis and 
guide for each executive responsible. 

/ Furnishes statements of untold benefits 
to the responsible heads of depart- 
ments. 

C 3. Merge Cost and General 

Accounting. 

Described as: 

ANALYZING both the cost and general ac- 
counting systems and then planning for 
such changes as may be necessary to co-ordinate 
them, after which the work of merging the two, 
would be undertaken. 
Results Obtainable: 

a Provides an absolute check as to accuracy 
for all cost figures, because if costs are 
not checked through, merging them 
into general accounts which are verified, 
they become merely memoranda of 
doubtful importance. 

h There is greater incentive for executives 
to use cost information, which they know 
is verified, as compared with information 
which includes certain questionable 
points. 

c The verification emphasizes the importance 
of the expenditures made. If execu- 
tives know that each dollar spent is 
being accurately accounted for and veri- 
fied, they will more carefully consider 
the expenditures and have more respect 
for their responsibilities as executives. 

d Permits of accurate monthly statements 
of assets, liabilities and profit and loss. 

59 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

^ ^' Provide Burden and Financial 
Statements 

Described as: 

ANALYZING the accounting methods, both 
cost and general, and compiling proper 
burden and financial reports from the figures 
shown, arranging for their proper presentation, 
showing comparisons for analysis and use by 
executives. 

Results Obtainable: 

a Proper burden and financial statements 
insure the use of cost information, which 
alone makes it valuable. 

b Permits and encourages concentration on 
such comparisons as will facilitate more 
effective management, and assure at- 
tention to necessary details. 

c It develops more enthusiastic and interest- 
ed management, because with informa- 
tion available, it can be made to repre- 
sent the score board of the game, and 
bring a greater interest to the daily 
job. In this way, they show results in 
which every full-blooded American exe- 
cutive Is interested. 

d They can be made to show prophecies for 
the future, and become a guide for future 
activities. 

e By indicating standards and by watching 
fluctuations of actuals from standard 
and all other variations, they offer a 
basis for most effective control by 
management. 

60 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

r C 5. Establish Idleness Records 

Described as: 

PROVIDING the means for periodically 
analyzing and presenting the cost of idle- 
ness due to lost time by workers, and the idle- 
ness of machines and floor space; this idleness 
cost to be classified both according to location 
of idleness and causes of same, in this way 
separating the inefficiency of management from 
that of labor. 

Results Obtainable : 

a Offers a basis for cutting down absolute 
losses, through elimination of the causes 
of idleness of equipment, men, and 
plant capacity, which is variously esti- 
mated at from 30 to 60 percent in average 
cases. 

h Points out such instances where idleness 
is consistently so great, that capacity 
can be dispensed with entirely, and work 
performed otherwise, thus reducing in- 
vestment. 

c Through study of idleness, inefficiencies 
of management are separated from those 
of workers, and each can by careful 
investigation, be reduced to a practical 
minimum. 

d A study of causes of idleness offers as a 
basis for improvement, all such factors 
as are indicated as disturbing elements, 
such as lack of material, improper handl- 
ing of material, insufficient equipment 
maintenance, insufficient number of 
workers, poorly trained workers, incom- 
plete instructions, and many others. 

61 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

When improved for the individual case, 
the entire system can be improved, 
thereby effecting betterments in a wide- 
spread manner. 

e Study of idleness of machines and the 
causes often opens opportunities for im- 
proving mechanical features of the 
equipment itself. 

/ Study of idleness of equipment and plant 
capacity often points out ways of using 
this capacity for other purposes, by ad- 
dition of new lines of manufacture. 

g In many cases such a study points outre- 
suits in the disclosure of a great amount 
of floor space which can sometimes be 
rented, or can in some cases be used for 
other purposes where it is badly needed. 

C 6. Analyze Rejections 

Described as: 

STUDYING all rejections whether caused 
by defective material or faulty workman- 
ship, analyzing same and presenting the cost 
of rejections, according to causes, products, 
vendors, workers and departments, thereby 
showing in the proper way the cost of material 
wastes as distinct from the cost of idleness. 

Results Obtainable : 

a Provides basis for analysis of causes of 

losses due to rejections, either entirely or 

partially, indicating possible reductions. 

Every dollar which is saved is money 

earned. 

h Indicates through analysis poor workman- 
ship and inefficient workers who should 
be trained; on the other hand pointing 

62 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

out good workers whose work is not re- 
jected and who should be properly re- 
warded. 

c Indicates possibilities of better use of ma- 
terial, or on the other hand, use of better 
or different material to prevent wastage. 

d With positive records available, it provides 
a better basis for judgment of the net 
accomplishment of individual workers, 
foremen, inspectors, divisions and de- 
partments. 

e A campaign against unnecessary rejections 
sets an example and standard of quality, 
which has a definite psychological ef- 
fect on the work of everyone in the plant. 

Q 7^ Install Labor Accounting Methods 

Described as: 

DEVISING the most modern payroll me- 
thods which will show what has been spent 
for labor of all kinds, where it was spent, what it 
was spent for, and to whom it was paid. 

Results Obtainable: 

a Productive labor is probably the greatest 
resource in the world, but there is amaz- 
ingly little known about it. Proper 
payroll methods provide data from 
which the necessary knowledge can be 
secured. 

& It provides a basis for checking the super- 
vising executives, foremen, etc., as to 
their use of labor, and the application of 
it against various activities, thereby 
assuring that each worker is permitted 
to apply himself in his most productive 
capacity. 

63 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

c Positive records regarding labor costs pro- 
vide a basis for judging the accomplish- 
ment and activity of the individual 
worker, on an intelligent and fair basis, 
as compared with haphazard, unfair 
and often prejudiced judgment. 

d Payroll records offer a basis for judgment, 
regarding all changes in individual 
wage rates, including increases in the 
individual^ case, and adjustments of 
wage scales in general. 

e Payroll records are one of the fundamental 
bases from which to compile and check 
all labor costs, around which manufac- 
turing costs are established. 

/ Time records, as a part of payroll records, 
establish a fundamental basis for burden 
distribution. 

C R Create Equipment Inventories 

Described as: 

CREATING an equipment ledger with such 
figures as to value as can be secured, which 
ledger will show for each piece of equipment, the 
original or appraised cost, and the present 
worth, with provision for showing repairs, better- 
ments and depreciation. 

Results Obtainable : 

a Provides a basis for deterrnining actual 
worth and investment in equipment, for 
use in accounting practice and income 
tax returns. 

b Provides a basis for judgment in purchas- 
ing new equipment. 

c Provides basis for judgment in scrapping 
and discarding present equipment. 

64 



WHAT INDUSTRIAL ENGINEERINCj INCLUDES 

d Provides basis for depreciation charges, 

and the current costs. 
e Provides basis for judging efficiency of 

machine through records of repairs. 
/ In case of contemplated sales, it provides 

a definite basis for establishing actual 

value. 
g Provides basis for settling insurance claims. 

^' ^ Take Material Inventories 

Described as: 

ARRANGING the periodic taking of physi- 
cal inventories, supplying the forms neces- 
sary to take same, with full and complete in- 
structions, and supervising the pricing, checking 
and presentation of inventory values. 

Results Obtainable : 

a Provides basis for establishing actual valu- 
ations, to be used in accounting proce- 
dure and income tax returns. 

d Establishes a definite basis for controlling 
materials used, purchased and stored. 

c Indicates surplus materials which can be 
salvaged. 

d Indicates rejected materials which can 
be salvaged. 

e Facilitates control of necessary mini- 
mums and maximums to be carried, 
resulting in economical purchase and 
assurance that necessary materials are 
on hand when needed. 

/ Facilitates check upon proper use or waste- 
ful uses of material ; also checks charges 
of material against work performed. 

g In case of contemplated sale, provides 
basis for establishing actual present 
values. 

65 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

C 10. Devise Improved Office Procedures 
and Methods 

Described as: 

ANALYZING office routine as to personnel 
and methods, and deciding as to rearrange- 
ment in offices, betterments in methods and pro- 
cedures, changes in personnel, and general direc- 
tion of office work. 

Results Obtainable: 

a The very analysis of office routine often 
indicates possibilities for savings in this 
expense, which, since it is an indirect 
item, becomes actual money earned. 

b Being a service department to facilitate 
all the work of the operation depart- 
ments, all improvements indirectly facili- 
tate the work of the operation depart- 
ments. 

c The office is looked up to by the plant 
workers and if it sets the example of 
orderliness, simplicity, and effective- 
ness, this will be reflected in the plant 
conditions. 

d Efficient office routine will result in more 
effective management, because execu- 
tives who can turn for details and gen- 
eral routine, to a proper office system, 
will have more time for the construc- 
tive work of managing and directing. 

e All office records are valuable only insofar 
as they are used, and records which are 
delayed or behind time, are merely 
historical and have very little current 
value. Simple office routine provides 

66 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

that such records must be kept abso- 
lutely up to date for immediate and cur- 
rent use. 

/ Eliminates duplication of effort and rou- 
tine, indicating possibilities of using 
each original record, statement, form, 
or mechanism for as many purposes as 
possible. 

g Indicates possibilities whereby concen- 
tration of similar types of work, mechani- 
cal devices and more economical meth- 
ods can be used — for instance, electric 
tabulating machines, and the like. 

C 1 1 Write Up Standard Practice 

Described as: 

STUDYING the various production, cost, 
accounting and office methods and pro- 
cedures, and developing and putting into written 
form, standard practice instructions covering 
them. 

Results Obtainable : 

a Assures constancy and accuracy in records, 
statements, and work produced through 
the office methods. 

b Eliminates confusion, discussion and argu- 
ments regarding proper procedures. 

c Establishes simple basis for extension of 
these methods when necessary, pre- 
venting duplication. 

d Assures most effective use of clerks, by 
definitely outlining procedures and duties 
for each one. 

e By combining work of a similar nature, and 
definitely describing it, provides oppor- 
tunity for specialization, which results 
in more economical operation. 

67 



WHAT INDUSTRIAL ENGINEER ING INCLUDES 

/In case of vacancies, with requirements of 
various work outlined, permits a better 
selection of clerks qualified for the work. 

g In case of vacancies, provides a basis for 
more quickly training new clerks, as to 
requirements and procedures and duties 
of vacancies, as well as relationship to 
work of other positions. 

C 12. Set Machine Rates 

Described as: 

STUDYING equipment as to classes and units, 
analyzing cost elements entering into their 
operation and setting up hourly machine rates 
which will consider rent, power, depreciation and 
maintenance, along with rental charges for work- 
ing places. 

Results Obtainable: 

a Provides basis for measuring the value of 
expense of equipment used. 

b Provides basis for indicating in dollars and 
cents, the cost of idleness of equipment. 

c Provides basis for judgment in assigning 
equipment for performance on various 
operations. 

d Provides basis for estimating costs, and 
therefore sales prices, on work in pros- 
pect. 

e Provides more accurate basis for costing 
and pricing work produced on the vari- 
ous machines. 

/ Indicates opportunities for savings where 
work formerly accomplished on expen- 
sive machines can more economically 
be done on those which are less expen- 
sive. 

68 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

g Establishes a method of distributing 
burden items, which are often lost track 
of or improperly cared for when other 
methods are used. 

C 13. Modernize General Accounting and 
Cost Methods 

Described as: 

STUDYING wherein methods of accounting 
and cost fail to compare favorably with the 
most advanced practice, and outlining and 
putting into effect the changes which may be 
necessary to place same on the most modern 
basis. 

Results Obtainable: 

a Progress is being made daily in connection 
with new developments in accounting 
and cost practice. A study will point 
the way to making such methods most 
up-to-date and effective. 

b Analysis will indicate possibilities for elimi- 
nation of duplicate effort, and oftentimes 
show where certain individual elementary 
records may be used simultaneously 
for several difTerent purposes, eliminating 
one or more compilations of such original 
data. 

c Assures certainty that all such records are 
coordinated and verified, since without 
such check they may be inaccurate and 
useless. 

d In modernizing presentation, records for- 
merly used to only a limited extent 
can be humanized and made interesting 
thereby developing them to their 
fullest value. 

69 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

e The compilation of all worthless informa- 
tion can be eliminated and only such 
data as is significant can be provided 
and emphasized. 

C 14. Audit General and Cost Accounts 

Described as: 

MAKING monthly, quarterly, semi-annual 
or yearly audits of general accounting and 
costing with reports showing exact condition of 
business and recommendations covering better- 
ments. 

Results Obtainable: 

a Assures the constant accuracy of all en- 
tries. 

h Points out inefficient or unreliable, as well 
as any dishonest manipulations of figures 
and records. 

c Safeguards the judgment and decisions 
of the management against any dis- 
turbing facts or influences. 

d Brings out opportunities for improvements 
in methods. 

e Provides a basis for financial reorganiza- 
tions or adjustments. 

/ Safeguards investments already made, as 
well as those which are contemplated. 

C 15. Develop Control Accounts 

Described as: 

ANALYZING nature of business, methods of 
manufacturing, accounting and costing 
procedure, and outlining the number and kind 
of controlling accounts which should be used, 
as well as preparing written instructions covering 
debit and credit entries to controlling accounts, 
also arranging to supply the proper information 
for entry. 

70 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable : 

a Provides the means of controlling all ac- 
counts in order to operate safely and 
accurately the various asset, liability and 
expense accounts which make up the 
monthly statements. 

h Assures every expenditure, either current 
expense, investment, or of whatever 
nature, being charged in every case 
to exactly the same account. 

c Eliminates all confusion, discussion, or 
arguments as to proper credits and 
debits. 

d Provides a definite and fair basis for judg- 
ment of management responsible for 
various expenditures. 

e With accuracy and consistency assured in 
charging, the management has a basis 
for comparisons, period by period, one 
account with the other, so as to judge 
the advisability and effectiveness of the 
various expenses in order o study and 
eliminate variations and fluctuations 
where possible. 

/ Provides a basis for setting up standards, 
and by measuring actual against such 
standards, definite control of all expen- 
ditures can be established. 

g Provides a basis for planning future in- 
vestments and expenditures. 

C 16. Outline Basis for Unit Costs 

Described as: 

STUDYING nature and needs of the business, 
determining way costs are compiled, as- 
certaining the nature of general accounting, and 
prescribing the procedure to get costs on the 

71 



WHAT INDUSTRIAL ENGINEER ING ^INCLUDES 

correct unit basis, whether operation, parts, 
process, class, orders, or products. 

Results Obtainable: 

a EstabHshes basis for accurately distri- 
buting each item of cost against a prac- 
tical and recognized unit of production 
and sale. 

b This assures accurate charging of expendi- 
tures to the same unites in all cases. 

c Provides a basis for establishing proper 
prices on units produced, or on estimat- 
ed prices per unit to be produced. 

d Provides basis for comparisons, one unit 
with the other, or periodical productions 
of the same units, to be used by manage- 
ment in reducing costs. 

e Provides a basis for the setting of standards 
against which actual accomplishments 
can be measured, and any wide fluctua- 
tions noted, accounted for, or reduced. 

/ Provides a basis for judgment as to any 
contemplated changes in methods of 
production, new processes, purchase of 
equipment, or changes in facilities. 

g Provides a basis for fair judgment of all 
workers involved in production of the 
unit. 



72 



D Sales Control 

D 1 . Determine Unexploited Sales 

Possibilities 

Described as: 

PROVIDING a means whereby careful and 
systematic study can be given to the matter 
of increasing sales through analysis of plant and 
equipment capacities, product data, market 
conditions, territorial requirements, costs and 
prices. 

Results Obtainable: 

a Gives sales department information re- 
garding any unused plant or equipment 
capacities, indicating whether or not 
these could be used on regular line of 
manufacture, and, if not, what kind of 
work would be most desirable. 

h Provides incentive to sales department to 
increase sales through efforts to secure 
orders which will use this unused plant 
and equipment capacity. 

c Analysis of product will indicate whether 
there is a wider use or market for it, in its 
present design or with some slight chang- 
es. 

d Study of market conditions will indicate 
whether or not any markets are unex- 
ploited and to what degree, as well as to 
point out any industries or localities 
where sales effort is not all that it might 
be. 

e Will indicate whether or not all advisable 
territories are being covered; whether 
there is sufficient concentration on those 
offering best results ; whether methods of 

73 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

covering territories are adequate, and 
finally whether sales in each territory 
are in correct proportion to possible re- 
quirements. 

/ Will indicate effective price on volume 
sales, particularly where price is affected 
by costing plan, burden distribution, or 
profit adjustment. 

g Will place in the hands of sales force, 
knowledge of operating conditions, mar- 
ket conditions, basis of cost and price — 
first, as a guide in applying sales effort 
and second, to use as arguments in indi- 
vidual selling, advertising and sales 
campaigns. 

D 2. Capitalize Undeveloped Profit-making 
Possibilities 

Described as: 

ANALYZING the various elements which 
enter into profits, as for instance, relative 
complication, as a basis for determining construc- 
tive policies looking toward increasing the net 
returns. 

Results Obtainable : 

a Will indicate relative complexities and 
therefore variations of cost of different 
commodities produced, particularly high 
labor cost articles as distinct from high 
material cost articles. 

b Will indicate any possibilities of simplifi- 
cation in design or methods of manufac- 
turing. 

c Will indicate on which particular lines great- 
er pressure should be brought to bear in 

74 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

sales effort, In order to secure balanced 
volume, which will accrue greatest 
profits. 

d Will indicate most complicated and costly 
products, on which price could be in- 
creased, either immediately or thru 
gradual education. 

e Will give sales organization complete 
knowledge of basis of manufacturing, 
also costing to be used as a guide in 
sales effort, as well as for arguments in 
closing sales, and in sales campaigns. 

£) 3. Locate Unprofitable Lines 

Described as: 

CAREFULLY studying the unprofitable items 
and reasons for same, with the aim of either 
eliminating them or reducing them to a minimum, 
thereby allowing for concentration on the more 
profitable lines. 

Results Obtainable : 

a Will point out on which lines or product 
special effort should be concentrated, 
to reduce cost through a simplification 
of design or processes. 

h When cost is at a minimum, it will indicate 
to sales department all items showing 
no profit, and will bring such unprofita- 
ble lines as may be eliminated, to at- 
tention for decision on this point. 

c Where unprofitable products must be con- 
tinued to complete a line, will point out 
forcibly to sales department the need of 
keeping such orders, at a minimum. 

d Will provide basis for control of sales 
effort and order acceptance, to insure 

75 



WHAT INDUSTRIAL ENGINEERING .INCLUDES 

that losses from unprofitable lines will 
not exceed profits from those which are 
profitable. 

e Will provide basis for gradual education 
of competitors and general trade, for the 
acceptance of such increased prices as 
will show profits. 

/ Will provide sales department with added 
arguments to be used in pointing out 
to customers such actual losses as an 
indication of effort to maintain good will. 

D 4. Reduce Lost Sales 

Described as: 

PROVIDING a mechanism for analyzing 
lost sales as to territory, salesmen, product 
and causes, thereby meeting competition more 
intelligently and forcefully. 

Results Obtainable: 

a Will guide all sales effort, furnishing a pro- 
gram for concentration. 

h Will set up a goal in various territories for 
individual salesmen to attain. 

c Provides a basis for intelligent judgment 
of the ability of the various groups of 
salesmen. 

d Provides basis for more intelligently as- 
signing salesmen to various territories. 

e Indicates opportunities for possible re- 
vision of territories to provide more 
effectual concentration. 

/ Furnishes basis for adjustments in sales 
force and organization, showing whether 
or not more salesmen are needed, or 
how the present force can be shifted 
to more effectually cover the ground. 

76 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

g Indicates possibilities for improvement of 
product design or quality. 

h Indicates any need for price adjustments. 

i Indicates any need for improvement in 
deliveries. 

j Indicates any necessity for adding addi- 
tional products to make the line com- 
plete. 

k Indicates need for closer foUowup of quo- 
tations made. 



D 5. Adjust Prices 

Described as: 

CONSTRUCTIVELY studying the matter of 
prices and their relation to costs, plant ca- 
pacity, demand, competition, and nature of 
product, as a basis for determining intelligent 
and logical adjustments in same. 

Results Obtainable : 

a Gives assurance that prices are based on 
proper and accurate cost methods, 
which truly reflect operation costs. 

h Gives assurance that all factors are pro- 
perly distributed, and that profitable 
and unprofitable lines are evenly di- 
vided. 

c Indicates any possibilities for reduction 
in prices, to secure greater volume, by 
more complete use of full plant capacity. 

d Points out nature of price competition, 
how it can be met, and to what extent 
justified. 

77 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

e Provides sales department with intelligent 
information, as the basis for judging 
in individual cases where large orders 
can be secured through slight adjust- 
ments in price. 

/ Points out possible changes or simplifica- 
tions of product design, or methods of 
manufacture, or quality, which might 
result in reduction of price and increased 
sales. 

g Gives sales department complete knowledge 
of price and cost basis to be used as a 
guide in applying sales effort on various 
lines, and from which to draw arguments 
for closing sales in an advertising cam- 
paign. 

D 6. Coordinate Sales Effort with 

Factory Conditions 

Described as: 

ARRANGING for knowledge of orders ahead 
through analysis of congestion and excess 
capacity according to departments, type of 
equipment or product, as a means of forecasting 
where sales pressure will have to be exerted, or 
where too much has been sold. 

Results Obtainable : 

a Gives sales department advice as to exact 
conditions as a guide in expenditure of 
sales effort, so they can secure such 
business as can be most profitably man- 
ufactured, from time to time. 

h Points out any unused capacity, as an in- 
centive to sales department to secure 
such orders as will make use of it, on a 
profitable basis. 

78 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

c Provides information as a guide to sales 
department, in making delivery promis- 
es, showing possibilites on the one hand 
of offering best deliveries which may 
secure desirable orders ; on the other hand, 
of the necessity to secure sufficient time 
for delivery of orders. 
d Will point out to the sales department, 
that because of impossible delivery prom- 
ises, orders must be crowded through 
the plant on an expensive cost basis, 
even to the extent of becoming unprof- 
itable. 

e Keeps sales department advised at all 
times, as to which lines of manufacture 
must be pushed to keep plant balanced. 

/ Furnishes a basis for future program of 
activity of sales department, as to size 
and type of organization needed, price 
adjustments, and general sales campaign. 

D 7 Predetermine Selling Cost and Price 

Described as: 

ORGANIZING the work of estimating costs 
on new orders, based on cost rates reflecting 
the normal capacity of plant or department, 
thereby securing a larger volume of sales than 
if actual costs were used at a time when plant 
was operating at reduced capacity. 

Results Obtainable: 

a Increases volume of sales to as near normal 
capacity as possible because prices will 
reflect normal condition. 

h Provides intelligent basis for accurately 
estimating on prospective work, as- 
suring fair competition on desirable 
work. 

79 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

c Increases volume of profitable work se- 
cured. 

d Reduces amount of unprofitable work 
taken. 

e Points out emphatically any orders accepted 
at low profit, or at no profit so that costs 
can be kept to a minimum in such cases. 

/ Assures basis of prompt estimating and 
bidding on work so as to assure con- 
sideration. 

g jGives sales department complete basis for 
judgment in sales effort, as well as for 
adjustment in prices where necessary 
to secure desirable order, or to secure 
volume. 

h Eliminates arguments and confusion re- 
sulting from varying opinions as to 
what estimates should be. 

i By providing standard estimating tables 
and schedules, simplifies procedure and 
eliminates much unnecessary clerical 
effort. 
D 8. Improve Deliveries 

Described as: 

DETERMINING proper delivery promises, 
scheduling same, and planning for proper 
and efficient follow-up, as an aid in shipping or- 
ders as close to delivery dates as possible. 
Results Obtainable : 

a Increases volume particularly where de- 
livery is important basis of competition. 
b Assures satisfied customers by making only 

such promises as can be met. 
c Provides sales department with intelligent 

basis for making delivery promises. 
d Eliminates all arguments between sales de- 
partment and operating department, as 
to proper delivery promises. 

80 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

e Eliminates a great deal of unnecessary 
clerical effort, "chasing", and following 
up work. 

/ Definitely decides proper sequence and im- 
portance of various orders, with no 
post mortem arguments. 

g Reduces cost by a reduction in costly 
changes in production schedules, where 
jobs are often interrupted for special or 
rush orders. 

h Keeps any particularly desirable rush 
order in its proper place of importance, 
and is concentrated upon. 

i Provides basis for decision as to such se- 
quence of orders, as will keep greatest 
number of customers satisfied, as well 
as fulfill promises of sales department, 
and at the same time provide most eco- 
nomical manufacturing costs. 



D 9. Develop New Lines 

Described as: 

ANALYZING plant conditions, equipment, 
and product made, as a basis of determin- 
ing what additional lines of manufacture plant 
should logically arrange to secure, and then lo- 
cating where such lines are. 

Results Obtainable: 

a Indicates possibility of adding new lines 
which will make use of any unused or 
unfilled capacity. 

81 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

b Indicates any new lines which may make it a 
profitable investment to purchase ad- 
ditional equipment and reduce general 
everhead, thereby reducing costs on all 
production. 

c Will indicate new lines which will make it a 
profitable investment to purchase new 
equipment which can be used for part 
time on present product to reduce its 
cost. 

d Will indicate new lines which will 
make range of product complete, and 
facilitate securing orders, because of 
ability to furnish such complete range. 

e Will indicate new lines which can be ef- 
fectually sold in conjunction with pre- 
sent line, thereby reducing sales ex- 
pense. 

/ Will point out such additional lines as will 
carry sales effort into desirable terri- 
tories and markets. 

D 10. Apply Unused Publicity Factors 

Described as: 

STUDYING from an engineering viewpoint, 
where possibilities exist for placing before 
prospective customers, the best arguments as 
to merits of the products, results to be secured, 
qualities, deliveries and other factors influencing 
sales, all to be presented in a convincing manner, 
written or graphic, for use by the advertising 
manager or the advertising agency, or other 
interested executives. 
Results Obtainable : 

a Will assure complete presentation of all 
sales arguments and improve sales 
effort. 

82 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

b Will provide a basis for developing such 
publicity as will offer a better back- 
ground for concentrated sales effort. 

c Will provide basis for better education 
of salesmen, in their knowledge of the 
product they are selling. 

d Will in many cases because of study and 
analysis, develop suggestions for im- 
provement of product for its wider ap- 
plication. 

e Will in some cases indicate new applica- 
tions and new markets for product. 

/ Will offer basis for concentration of sales 
force, in those fields or markets where 
product can best be applied and greatest 
volume secured. 

g By graphic presentation, will assure use of 
information in all advertising campaigns, 
and in all sales efforts. 

h Careful analysis will often bring out new 
merits, or advantages of product hith- 
erto unknown. 

D 11. Ascertain Export Possibilities 

Described as: 

STUDYING type of products, uses,markets, 
and other pertinent features in connection 
with the distribution of the goods manufactured; 
collecting information as regards conditions 
abroad, possible markets, data as to exchange, 
packing and shipping requirements, all to serve 
as a basis for indicating the possibilities in ex- 
porting parts of the product manufactured. 

Results Obtainable : 

a Will determine for the future, complete 
sales program as to possibility of export 
field. 

83 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

h Where export markets can be added, will 
provide basis for increased volume, 
which will fill in unused capacity. 

c Through increased volume, overhead can 
be reduced, resulting in lower prices 
and better basis for meeting local com- 
petition. 

d Will offer opportunities for expansion of 
entire line of product. 

e Will offer outlet for production, when local 
conditions show depression. 

/ This study will also indicate information, 
as to nature of any existing foreign or 
possible competition, either here or 
abroad. 



H 



I 



E Technical Control 

E 1 . Standardize and Improve Use 
of Equipment 

Described as: 

STUDYING machines as to class, nature of 
work performed, material used, and de- 
veloping standard practice, with working charts 
which can be used to secure maximum results by 
workers, foremen and inspectors, covering the 
best speeds, feeds and cuts under varying con- 
ditions, for different kinds of material. 

Results Obtainable: 

a Accomplishes actual savings in cost of 
production. 

h Provides basis to production department, 
for assignment of the various operations 
to equipment, specifying best equipment 
to use, and first or second alternative, 
if the best equipment is already loaded 
with work. 

c Indicates possibility of improving design 
of equipment itself, in order to make its 
use more profitable. 

d Indicates possibility of increasing speeds 
and feeds of equipment, so as to increase 
its productivity. 

e Eliminates all arguments or confusion as 
to best use of equipment for different 
purposes. 

/ Provides instructions so that each parti- 
cular piece will be performed in exactly 
the same way each time, and according 
to best practice. 
g Eliminates all haphazard judgment of 
foremen, workers, and inspectors, which 

85 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

may or may not constitute most eco- 
nomical practice. 

h Provides basis for better judgment of 
workers by foremen, inasmuch as judg- 
ment will be based on performance of 
established best practices, rather than 
arbitrary personal judgment. 

i Provides basis for more quickly training 
new workers to the best operation of the 
machines and equipment. 

j Assures use of material and product, which 
will result in most economical manu- 
facture, indicating in some cases where 
a better grade of material can be used, 
resulting in a savings in processing, 
which will more than make up for the 
increased cost of material. 

k Establishes basis for developing proper 
standard hourly productions of each 
machine, for use in measuring capacity, 
and through production control indicat- 
ing idle capacities. 

/ By standardizing .and limiting use of ma- 
chines, results in less repairs and fewer 
breakdowns, resulting in more economi- 
cal maintenarice and longer life of 
equipment. / 

^ 2. Design and Use Standardized 
Cutting Tools 

Described as: 

ANALYZING the cutting tools in use, as to 
work done, kibd of tool steel and cutters 
purchased, and the practice as to operation in 
cutting metals, as \ basis for determining and 

\86 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

standardizing the practice as to the cutting ma- 
terials to use, the forging, shapes and angles, 
and grinding; presenting the results in both 
written and chart form. 

Results Obtainable: 

a Reduces actual processing cost. 

h Eliminates all arguments and confusion as 
to proper manufacture, grinding, shap- 
ing and the use of cutting tools. 

c Provides basis for production department 
to assign work to machines equipped 
with tools which will result in most 
economical production or, if such tools 
are in use, for assignment to first and 
second alternative. 

d Provides basis for improving from time to 
time the designs of such tools as will 
result in the most economical produc- 
tion. 

e Indicates possibility for changing tools, 
tool shapes or methods of grinding, 
and machines themselves so they can 
be used to better advantage with possi- 
bilities of increasing speeds and feeds. 

/ Provides instructions which will assure 
work being performed in each case in 
exactly the same manner, with result- 
ant higher quaUty of work and most 
economical production. 

g Eliminates all haphazard judgment of 
foremen and workers which may or may 
not be the best practice. 

h Establishes basis for more quickly training 
new operators and workers. 

87 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

i Assures most economical use of material, 
indicating in some cases where more 
expensive material or product can be 
used, at a savings in cost of processing, 
which will more than make up for in- 
creased cost of material. 

j Indicates proper material to use in tools 
themselves for various kinds of work 
which will result in more economical 
production, as well as lesser tool cost. 

k Indicates in some cases where more ex- 
pensive tool will outlast many times 
cheaper tool and also save in processing 
cost. 

/ Provides a basis for establishing standard 
hourly productions, to be used by pro- 
duction department in planning, schedul- 
ing, dispatching and general control. 

m Results in less waste of tools themselves, 
and more economical tool maintenance. 

n Centralizing the grinding and reshaping 
of tools results in considerable savings 
and less idle equipment, eliminating 
delays to the operators and machines. 



E 3. Develop and Use Jigs and Fixtures 

Described as: 

STUDYING the various operations per- 
formed, observing the class of equipment 
worked on, and the nature of jigs and fixtures 
used, and advising as to the betterments in 
practice, which will reduce operating times, with 
arrangements for making drawings or sketches 
for the various designs of jigs and fixtures ad- 
vocated, along with instructions as to their use. 

88 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a Accomplishes actual savings in cost of 
manufacture. 

b Eliminates much confusion and arguments 
as to best practices. 

c Secures greater productivity per hour 
for various machines which, in cases of 
expensive equipment, amounts to a 
great deal. 

d Indicates possibilities of improvements 
in design of equipment, so that jigs and 
fixtures can be used most effectually. 

e Provides basis for quickly training opera- 
tors to make best use of equipment. 

/ Eliminates haphazard judgment of foremen 
and workers, as to best practice. 

g Provides basis for standard hourly produc- 
tion times to be used by production de- 
partment, in assigning work, and in 
general production control. 

h Saves wear and tear on equipment and re- 
duces maintenance expense. 

i Eliminates much expensive rehandling of 
parts and materials. 

£ 4 Analyze and Rearrange Plant Layout 

Described as: 

ANALYZING the layout of plant, and de- 
termining the arrangement of equipment 
and the working facilities furnished; observing 
the flow of product through departments and 
equipment, and after giving careful considera- 
tion to the relation of product flow to layout 
and arrangement of plant, preparing recommen- 

89 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

dations covering such changes and relocations 
as will eliminate the faults observed. 

Results Obtainable : 

a Results in reduction of operation costs, 
eliminating expensive handling and re- 
handling of materials and parts. 

b Assures quicker turnover of material- in- 
process. 

c Reduces actual length of time for product 
to go thru complete process of manu- 
facture. 

d Establishes better conditions for workers. 

e Provides in many cases, better lighting 
and therefore more economical produc- 
tion. 

/ In some cases eliminates and makes ob- 
solete, any equipment which is rarely 
used. 

g Indicates any extra space which may be 
used for other production, or in some 
cases, sublet at a profit. 

h In some cases eliminates the necessity for 
additional space and investment therein. 

i By eliminating congestion and haphazard 
handling, reduces accidents to workers. 

j In many cases where accident hazard is 
reduced, actual reductions in liability 
insurance are the result. 

k In some cases it reduces fire risk with the 
resultant reduction in insurance cost. 

/ Provides basis for more efTectual control of 
production. 

m Provides basis for more satisfactory ma- 
terial control, eliminating haphazard 
storing of raw materials and materials-in- 

90 



I 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

process, often preventing much waste 
through temporary or complete loss of 
materials or parts. 

E 5- Institute Anticipative Inspection 
and Maintenance 

Described as: 

OBSERVING condition of plant, equipment 
and tools ; studying the organization which 
looks after maintenance, analyzing to what ex- 
tent breakdowns and repairs out of working 
hours are anticipated, observing to what extent 
there is inspection of facilities in order to keep 
cost of maintenance at a minimum, and then de- 
veloping the organization of an efficient mainte- 
nance department, the basis of which would be 
a periodic and logical anticipative inspection 
of equipment and facilities, along with the 
development of records and reports covering the 
work. 

Results Obtainable: 

a Anticipates many costly breakdowns, with 
resultant expensive idleness of machines 
and equipment. 

b Through discovering minor breakages 
which can be repaired out of regular 
hours, allows machines more continuous 
operations. 

c Reduces cost of repairs themselves, and 
prevents many expensive repair jobs. 

d Reduces the expense for repair parts. 

e Extends the life of equipment itself. 

/ Permits a more continuous balanced pro- 
duction, and more effectual control of 
production. 

g Accomplishes more definite carrying out 
of delivery promises. 

91 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

h Reduces actual cost of production where, 
because of breakdown of one machine, 
work must be made in a more expensive 
way on equipment less adapted. 

E 6. Study Power, Generation and 
Transmission 

Described as: 

ANALYZING the equipment and methods 
used in generating and transmitting the 
various kinds of power, observing where losses 
are occurring, and recommending such physical 
changes or betterments in methods as will re- 
duce power costs. 

Results Obtainable: 

a Reduces actual cost of power generation. 

b Assures continuous performance of equip- 
ment, eliminating expensive idleness of 
plant capacity. 

c Reduces cost of fuel. 

d Permits use in many cases of improved 
equipment, with resultant reduction in 
operation costs. 

e Eliminates losses in generating power, 
every dollar of which represents a dollar 
earned. 

/ Reduces cost in transmission of power, 
which money is likewise a positive 
saving. 

g Eliminates any entire shutdowns of all 
equipment, which is expensive and in- 
terferes with keeping delivery promises. 

h Makes it possible to use certain equipment 
to better advantage, operating at higher 
speeds. 

i Reduces cost of maintenance of power 
plant equipment. 

j Extends the life of power equipment. 

92 



» 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

E 7. Apply Better Inspection 

Described as: 

ANALYZING process and final inspections, 
observing facilities used in inspecting work, 
and the methods of reporting rejections, the 
nature of extra work done on rejected work 
not entirely scrapped, and outlining betterments 
both as to facilities and methods, as will result 
in decreases in rejections. 

Results Obtainable : 

a Reduces cost of processing, through de- 
tecting imperfect work before expensive 
processing has been performed. 

h Salvages parts which can be repaired or 
used for other purposes. 

c Locates untrained workers where their 
work is constantly rejected, and train- 
ing them to perform properly. 

d Indicates equipment, tools or fixtures 
which turn out imperfect work, so that 
it can be improved. 

e Locates material which cannot be properly 
processed, so that it can be rejected and 
replaced. 

/ Improves quality of product. 

g Permits more rigid control of production, 
and provides production department 
with more positive basis for such con- 
trol. 

h Permits improved control of materials-in- 
process and to be stocked, since through 
inspection, counts can incidentally be 
made and verified. 

i Eliminates, through checking and inspec- 
tion, misplacement and loss of material 
and parts in process. 

93 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

j Provides incentives to workers for better 
workmanship and higher quality, in- 
stilHng in them a sense of pride in their 
work. 

k Indicates possibiHty of improvement in 
handHng faciUties and methods, pre- 
venting breakage in handhng. 

/ Indicates possibiHties for improved pro- 
cesses and need for estabHshment of 
tolerances and manufacturing stand- 
ards. 

m Provides basis for establishment of stand- 
ards of practice and manufacturing as 
to methods, materials, use, and quality. 

n Reduces rejections made by customers, 
and shipments of rejected goods, saving 
freight and transportation expense. 

Indicates unnecessary and expensive pro- 
cessing, where manufacturing is held to 
close tolerances and where less exact 
dimensions will serve just as well. 

E 8. Provide Proper Tool Rooms 

Described as: 

STUDYING the provisions made for location 
and placement of tools; the tool records; 
the tool system for giving out tools, and assuring 
their return; the toolmaking and repairing; 
the conditions of tools at machines and benches 
and in tool rooms; all to serve as a basis for de- 
veloping recommendations looking toward in- 
creasing the efficiency of tool facilities and 
methods. 

94 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable : 

a Develops actual economies in cost of tools, 
due to less breakage, less obsolescence 
and less actual loss of tools themselves. 

h Provides a means whereby tools can be 
made, ground and maintained, according 
to standard shapes, and the latest prac- 
tice. 

c Concentrates work of toolmaking and tool 
repairing, grinding and sharpening, 
having such work performed most ef- 
ficiently and economically, eliminating 
the necessity of machine operators 
dressing tools, thereby eliminating ex- 
pensive machine idleness. 

d By concentration, makes entire proposition 
worthy of careful study as to methods, 
tool steels and cutters used, and design, in 
all of which actual economies can usu- 
ally be made. 

e Assures necessary tools being ready for 
machine operators when they need them, 
thereby eliminating interruptions, and 
provides a basis for production depart- 
ment to more effectively plan, schedule 
and control production. 

/ By example, encourages orderliness and 
thrift in workers. 

g Reduces accident hazard. 

h In many cases, by concentrating tools all 
in the one place, space is saved in shop 
layout. 

E Q. Create Best Working Conditions 

Described as: 

ANALYZING elements such as lighting, 
heating, ventilation, toilets, washing fa- 
cilities, locker arrangements, cleanliness and or- 

95 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

deiliness of plant, crane service, trucking, ma- 
terial supply at machines, condition of equipment 
and tools, and reporting on suggested betterments 
which will make the plant a better place to work 
in. 

Results Obtainable: 

a Increases actual efficiency. of workers, re- 
sulting in an increased production 
output, and reduced cost per unit. 

b Creates better spirit of cooperation to- 
ward employer, and among present 
workers. 

c Draws to the employer a better class of 
workers, making employment particu- 
larly desirable to higher grade men. 

d Reduces labor turnover and expense of 
hiring. 

e Produces an actual savings in cost of train- 
ing of new men. 

/ By example, encourages orderliness and 
higher quality of work among all workers 

g Reduces accident hazard. 

h Eliminates congestion and disorder, al- 
lowing for better use of space; in some 
cases making available certain unoc- 
cupied space to be used for other pro- 
ductive purposes, and which in some 
cases can be sublet. 

i Eliminates dissatisfied and disgruntled 
workers and provides against labor agi- 
tation. 

j Provides a basis which facilitates better 
planning, scheduling and controlling of 
production. 

96 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

k Educates workers and secures their co- 
operation, in developing necessary re- 
cords and methods for management 
control . 

E 10. Outline Proper Use of Female and 
Common Labor 

Described as: 

STUDYING the nature of the operations 
performed; the class of labor employed; the 
degree of skill and strength required, and re- 
porting where better use can be made of female 
and common labor to replace the more skilled 
male workers. 

Results Obtainable: 

a Reduces actual production costs, through 
using cheaper labor on work which it 
can best perform, conserving higher 
class and higher priced labor to be applied 
where it is most needed. 

b Increases production, because on certain 
operations female workers are found to 
be better adapted, even though less 
skilled. 

c Reduces labor turnover where a greater 
number of the more plentiful and more 
easily secured help can be applied. 

d Creates a spirit of contentment and satis- 
faction among all workers when they 
are more happily adapted to their work. 

e Through specialization, facilitates the plan- 
ning, scheduling and controlling of 
production. 

/ Reduces actual cost of hiring where job 
requirements are fully defined. 

97 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Ell. Investigate Material Handling 

Described as: 

ANALYZING the facilities and methods 
used in connection with the matter of 
shop transportation and conveying as to nature 
of materials handled, lengths of travel, equip- 
ment used in the movement of materials, materi- 
al stations or depots, arrangement of stock rooms 
and other factors affecting material handled, and 
recommending ways and means for increasing 
the efficiency of this work. 

Results Obtainable: 

a Savings in actual dollars and cents, a re- 
duction in lost and broken material or 
that which is spoiled in handling; also 
in such items as general shrinkage and 
wastage. 

b Increases turnover of investment in ma- 
terials. 

c Saves in actual handling costs. 

d Increases production and reduces cost of 
producing, by eliminating idleness of 
machines waiting for materials. 

e Decreases investment in material cost of 
work-in-process. 

/ Improves carrying out delivery promises. 

g Permits of a definite control in movement 
of materials, thereby facilitating the 
planning, scheduling, and controlling 
of all production. 

h Facilitates inspection of incoming material 
as well as material-in-process, resulting 
in savings in rejected materials. 

i Improves quality of product, permitting 
better inspection and reducing damages 
in handling. 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

j Reduces congestion and therefore, fire 
hazard. 

k Reduces accident hazard. 

/ Helps to develop better basis for purchas- 
ing, oftentimes making it possible to eco- 
nomically purchase in quantities. 

m Facilitates possibility of current analysis 
of material used, indicating oppor- 
tunities for standardization and result- 
ant economies. 

n Encourages orderliness and thrift by ex- 
ample to all workers. 

Makes happier and more contented work- 
ers of present employes; in some cases 
improving working conditions. 

p Eliminates expensive manual labor in 
handling, by substituting wherever pos- 
sible, mechanical and electrical equip- 
ment, with which it can be done more 
quickly, more cheaply and to the greater 
satisfaction of all workers. 

q Eliminates congestion, thereby providing 
surplus space which can be devoted to 
other production, or sublet at a profit. 

E 12 Organize Research and 

Experimental Work 

Described as: 

OBSERVING how new designs, changes in 
designs, and suggestions as to betterments 
in products are handled, as well as the 
experimental and research work in connection 
therewith, and then developing recommendations 
covering the organization and better handling of 
this function. 

. 99 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a Reduces the cost of production, by develop- 
ing designs which can be produced more 
economically with existing plant facili- 
ties. 

b Indicates where quality can be improved. 

c Indicates where usefulness of product can 
be broadened, thereby opening new 
fields for its sale and distribution. 

d Eliminates, through possible standardiza- 
tion, expensive interruptions in process- 
ing and in production schedules. 

e Eliminates confusion and arguments rela- 
tive to proper design, changes and im- 
provements. 

/ Brings to bear highest talent available con- 
centrating on these problems, and elimi- 
nates haphazard judgment of such in- 
dividuals in the organization who have 
neither the ability nor time to devote 
to these problems. 

g Points the way to new products and new 
lines which may become highly pro- 
fitable. 

E 13. Ascertain By-Products 

Described as: 

ANALYZING wastes naturally incident to 
regular manufacturing processes as dis- 
tinct from preventable wastes; classifying them, 
ascertaining characteristics and disposition of 
waste materials and carefully studying where 
opportunities may exist for developing by- 
products, which can be manufactured and mar- 
keted at a profit. 

100 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a Indicates possibilities of elimination of 
certain losses through material wastes 
in process. 

h Establishes better basis of judgment of 
management, by setting up standards 
covering unavoidable wastes. 

c Reduces actual wastes, through setting up 
objectives from such standards. 

d Capitalizes waste from one product, by 
applying it as by-products. 

e Capitalizes waste, by studying sales possi- 
bilities and more advantageous markets 
and uses for it, outside of present organi- 
zation. 

/ Indicates possibility of extending line of 
product, thereby opening new markets. 

g In some cases, indicates possibilities of 
savings in materials by using such ma- 
terials as will result in less waste. 

h Indicates possible savings in production 
costs, where other materials on which 
effort and labor has been expended 
might be used with less waste of rejected 
parts. 

i By example, encourages orderliness and 
thrift of all workers as well as per- 
sonnel of management. 

E 14. Establish Time Study Campaigns 

Described as: 

ORGANIZING the work of making or direct- 
ing the making of scientific stop watch 
time studies, as the basis for determining 
standard hourly production or for purposes of 
rewarding workers in proportion to indi- 
vidual attainments, or both. 

101 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a Establishes basis for absolute control of 
all plant production and capacity. 

h Provides a basis for better assignment of 
work to machines most fitted for it, and 
on which it can be performed most 
economically. 

c Facilitates actual routing of work through 
the plant. 

d Provides basis for absolute planning, sched- 
uling and dispatching of work. 

e Establishes basis for absolute control of 
current production. 

/ Eliminates all confusion and arguments as 
to quickest methods for performance of 
work, and as to length of time given op- 
erations should take. 

g Establishes basis for better judgment of 
plant management. 

h Establishes basis for more eflfectually as- 
signing materials to working places. 

i Indicates possibilities for improvement of 
processes, machines, cutting tools, jigs 
and fixtures, handling methods, and ma- 
terials. 

j Aids in keeping delivery promises. 

k Provides basis for establishing standard 
practices which will insure high quality. 

/ Provides basis for fair dealing with indi- 
vidual workers, establishing definite 
basis for judgment, as against haphaz- 
ard judgment and guesswork. 

m Indicates efficient workers who should be 
properly rewarded, as well as those less 
efficient and untrained who need further 
training and coaching. 

102 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

n Provides basis for application of bonus 
premium or task plan of rewarding 
workers, in proposition to their individual 
abilities and efforts. 

o Provides one factor very necessary in de- 
veloping basis for proper estimating of 
new work. 

E 15. Eliminate Operation Wastes 

Described as: 

MAKING scientific studies of various opera- 
tions by observation, or with a stop watch 
or both, as the basis for determining lost motion, 
excessive handling, loafing, carelessness, and 
such other wastes as a careful study would 
reveal, as the basis for recommending such bet- 
terments as would tend to eliminate the faults. 

Results Obtainable: 

a Actually saves money in reducing operat- 
ing costs. 

h Establishes basis for betterments which 
will increase production. 

c Indicates possibilities for elimination of 
fatigue of workers, thereby increasing 
efficiency and improving working con- 
ditions. 

d Indicates possibility of improvements in 
processes, handling methodfe, machines, 
cutting tools, jigs and fixtures, layouts, 
and materials used in production. 

e Indicates possibility of change in design 
of product which will improve its qual- 
ity, broaden its application, and in some 
cases, widen its field of distribution into 
other markets, 

f Establishes basis for standardization of 
processes, equipment, tools and ma- 

103 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

terials, with the resultant changes to 
come from this. 

g Reduces waste in materials used. 

h Reduces expensive breakdowns and idle- 
ness of equipment. 

i Reduces cost of tools and tool set-up time. 

j Indicates most efficient and industrious 
workers as compared with those who 
are not applying themselves. 

k Reduces rejections and poor quality of 
work. 

/ Establishes improved basis for training 
workers, as well as selecting for vacancies 
those most adapted to each specific 
job. 

m Eliminates much confusion, many argu- 
ments and haphazard judgment re- 
garding best methods, equipment and 
facilities of production. 

n In many cases reduces fire hazard. 

o Usually reduces accident hazard. 

E 16. Prescribe Engineering and Drafting 
Department Procedures 

Described as: 

STUDYING the methods, facilities and pro- 
cedures in the Engineering Department 
and drafting room, as to designs, drawings, trac- 
ings, sizes and kinds of prints, instructions, speci- 
fications, coordination with other departments, 
all to serve as the basis for recommendations 
covering betterments. 

Results Obtainable: 

a Indicates possibility of reduction in over- 
head expense. 

104 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

b In many cases provides more definite in- 
structions to plant which reduces actual 
production costs. 

c By improving class of blue prints and in- 
structions, eliminates many errors and 
the cost of their correction. 

d For same reason, in many cases reduces re- 
jections of completed parts or completed 
products, including saving of material 
and work performed on such products; 
eliminates much waste time spent in 
arguments, and the laborious studies of 
imperfect or incomplete instructions. 

e By designating tolerances, and through ac- 
curate design and instruction, quality of 
product is improved. 

/ By studying facilities of plant, engineering 
department can design and specify pro- 
duct in such a way as will permit of 
most economical production, with such 
existing facilities. 

g In engineering department itself, work can 
often be concentrated and specialized 
so that most expert designers can be 
applied to most important work, and 
cheaper men be used on tracing and 
simple drafting. 

h In many cases changes of design, after pro- 
duction is started, can be reduced to a 
minimum, thus eliminating expense of 
interruptions in production schedule. 

i By proper planning, scheduling and con- 
trolling of work of engineering and 
drafting departments, and coordinating 
them with production department, much 

105 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

expensive idleness of equipment wait- 
ing for instructions and blue prints can 
be obviated. 

j Facilitates entire planning, scheduling and 
dispatching of all production. 

k Facilitates better basis for delivery prom- 
ises, and also improves possibilties of 
meeting such promises. 

/ Facilitates inspection, by providing proper 
standardization of design and complete 
instructions. 

m Eliminates much expensive field work 
necessary to repair or change errors in 
shop. 

E- 17 Stimulate Standardization 

Described as: 

MAKING thorough analysis of conditions 
in connection with: 

1. Product 

2. Equipment 

3. Tools 

4. Materials 

and then developing outlines covering the 
physical betterments as to each, which when 
adopted, can constitute standard practice. 

Results Obtainable: 

a The analysis itself indicates possibilities 
for improvement and many economies, 
described in detail in other places in this 
book. 

h Improves the quality of product and broad- 
ens its field of application and use as a 
rule. 

c Eliminates all confusion and arguments 
as to practices and all haphazard judg- 
ment which may or may not be correct. 

^06 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

d Provides a basis and starting place for 
researches and experiments of all kinds 
for continuous future improvements in 
processing facilities and product. 

E 18. Define Limits and Tolerances 

Described as: 

ANALYZING nature of product manufac- 
tured, inspection data, standards as to 
finish, instructions on drawings, equipment of 
gages and tools, interchangeability, extra work 
necessary in assembling and erection; and with 
the above as a guide, developing reasonable 
limits and tolerances for the machining of vari- 
ous parts and getting this information in proper 
condition for use. 

Results Obtainable: 

a Improves quality of product. 

h Reduces cost of production per unit. 

c Usually facilitates assembling, and in- 
creases efficiency of that operation. 

d Facilitates inspection. 

e Furnishes instructions to workers, eliminat- 
ing confusion, arguments and haphazard 
judgment. 

/ Gives workers and all concerned a goal 
to shoot at, making their work more 
interesting. 

g In many cases reduces cost of special gag- 
es, tools, jigs and fixtures. 

h Establishes fair basis for intelligent judg- 
ment of accomplishment of workers. 

i Provides definite instructions for training 
new workers. 

107 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

E 19. Adopt Best Product Design 

Described as: 

STUDYING product, methods of manufac- 
ture, uses to which product is put, require- 
ments of trade, and with this as a guide, develop- 
ing a program of better product design which 
will give due consideration to adaptability, in- 
terchangeability, standardization, utilization of 
present equipment, proper specifications of ma- 
terial, and proper finish allowances. 

Results Obtainable : 

a Improves quality of product, thereby in- 
creasing sales, and reducing rejections 
and returned goods. 

b Widens field of distribution and new ap- 
plications for product, and develops 
new markets. 

c In many cases reduces cost of production. 

d In some cases reduces cost of materials 
used. 

e Facilitates inspection. 

/ Eliminates much confusion, arguments, 
and haphazard judgment. 

g Reduces cost of field work, correcting er- 
rors. 

E 20. Define Materials Specifications 

Described as: 

STUDYING the important materials used in 
manufacture of the product; ascertaining re- 
quirements on such material, and from this work- 
ing up a complete set of material specifications 
which can be used as the basis for more eco- 
nomical use and more intelligent purchasing and 
as a guide in inspecting materials as they are 
received. 

108 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Results Obtainable: 

a Usually reduces cost of materials used in 
product. 

b Improves quality of product, increasing 
its sale, and broadening its field of dis- 
tribution. 

c Reduces obsolescence of material. 

d Eliminates much waste of material. 

e Facilitates inspection. 

/ Reduces rejections and bad work. 

g Makes possible more economical purchase. 

h Develops improved material control, as- 
suring necessary materials being avail- 
able when needed. 

i Furnishes basis for improved production 
control. 

j In many cases facilitates production and 
reduces manufacturing costs. 

E 21. Install Chemical and Physical 
Laboratories 

Described as: 

ANALYZING the requirements and specifi- 
cations of materials purchased, and deter- 
mining to what extent chemical and physical 
laboratories would be of advantage in testing 
incoming materials; securing figures as to pro- 
bable cost of installing such laboratories, and if 
decision is in favor of installing them, directing 
the work of organizing same and determining 
procedures. 

Results Obtainable : 

a Improves quality of product. 

h Usually reduces cost of material used in 

product, thereby increasing sales and 

distribution. 

109 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

c Facilitates inspection. 

d Reduces rejections and returned goods. 

e Eliminates much expensive field work, re- 
pairing and replacing. 

/ Reduces material waste and obsolescence. 

g Facilitates more economical purchasing. 

h In many cases, facilitates production and 
reduces production costs. 

i Eliminates considerable idleness of equip- 
ment waiting for material, which at the 
last minute is found defective. 

E 22. Survey Plant Location, Design 
and Construction 

Described as: 

STUDYING product manufactured or to be 
manufactured, sources of raw material, 
sources of labor, living conditions, shipping fa- 
cilities, and with the above as a basis, advising 
as to matters in connection with location of plant 
and its design of construction, making, if neces- 
sary, such surveys of definite localities as may 
be necessary, and in addition, determining the 
favorable features in connection with particu- 
lar designs and constructions. 

Results Obtainable: 

a Makes possible most economical manu- 
facturing costs for materials, labor and 
overhead. 

b Points out possibilities of securing advan- 
tages over competition in delivery pos- 
sibilities, bringing plant closer to market. 

c Points out possibility for improving living 
conditions of workers, thereby reducing 
turnover, securing higher class and more 
efficient workers, improving relations 

110 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

between employer and worker, and de- 
veloping greater contentment. 

d In some cases, through getting closer to 
source of supply of raw material, current 
investment can be reduced, and turn- 
over of this investment increased. 

e Entire investment for complete plant fa- 
cilities can be considerably reduced, 
releasing part of the money for expand- 
ing business or for investment else- 
where. 

/ Makes it possible to expand plant and 
thereby increase production and reduce 
costs. 

g Keeps fire hazard at minimum. 

h Keeps accident hazard at minimum. 

i Insures best plant layout, better routing of 
materials and products, and cheaper 
operations. 

j Offers best basis for production control. 

k Furnishes possibility for best material con- 
trol, through proper storing facilities 
and more direct movement through 
the plant. 

I Facilitates keeping delivery promises. 

m Where a plant can be brought close to the 
market, improves possible service to 
customers. 



Ill 



h Production Control 

K 1. Standardize Hourly Production Rates 

Described as: 

ANALYZING the various operations as to 
the nature of work done and equipment 
used, and from estimates by foremen, from re- 
cords of past performances, and assisted by the 
experience of the engineers, determining at- 
tainable standards as to hourly productions, 
along with description of the conditions existing 
at the time rate was set. 

Results Obtainable : 

a Provides basis for increasing and balancing 
production. 

h Furnishes one of the most important fac- 
tors in making estimates of work. 

c Facilitates cost control. 

d Indicates possibility of economies and im- 
provements in operations. 

e Provides a basis for establishing incentive 
payment plans to workers, on individual 
effort basis. 

/ Insures fair and intelligent judgment of 
individual worker's accomplishment. 

g Insures fair and intelligent judgment of 
departmental accomplishment. 

h Indicates any lack of capacity of either 
workers or machines. 

i Insures fuller utilization of man and ma- 
chine capacities. 

j Eliminates congestion in movement of 
product through the plant. 

k Reduces direct labor costs. 
113 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

I Improves relationship between workers 
and department heads. 

m Facilitates planning, scheduling, dis- 
patching and controlling of production. 

n Eliminates much confusion, arguments 
and haphazard judgment, in assign- 
ment of work, and the use of plant 
capacity. 

F 2. Organize Material Storage, Records 
and Control 

Described as: 

STUDYING material situation as regards 
storerooms and their safeguards; handling 
of materials in storerooms ; the nature and han- 
dling of stock records, methods of requisitioning 
materials from stock and returning to stock 
materials not used; how balances are checked; 
how maximums and minimums are determined; 
whether money values are used on stock records 
and requisitions, and with this analysis as a basis 
outlining the latest practice which should be 
developed, also organizing for the most efficient 
control of materials. 

Results Obtainable : 

a Prevents many actual losses in materials. 

b Decreases inventories. 

c Reduces actual spoilage. 

d Checks many of the usual wastes. 

e Facilitates carrying proper material costs. 

/ Makes possible development of monthly 
profit and loss statements. 

g Reduces delays in production, due to wait- 
ing for stock or materials.- 

114 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

h Indicates possibility for improvement in 
material handling, and reduction of 
costs in material handling. 

i Saves space and storage of material, in 
some cases making such space available 
for other use, or for subletting it at a 
profit. 

y Facilitates locating material promptly when 
needed. 

k Improves relationship between operating 
department and purchasing and storage 
department. 

/ Improves basis for estimating on new work 
through furnishing accurate data of ma- 
terial cost prices and availability. 

m Facilitates economical purchasing. 

n Assures material being on hand when 
needed and a definite knowledge of 
shortages. 

o Facilitates planning, scheduling, dispatch- 
ing, routing and, in fact, entire control 
of production. 

p Facilitates inspection. 

F 3. Prepare Bills of Material or Parts Lists 

Described as: 

ANALYZING the nature of the product, me- 
thods of manufacture, kind of bills of ma- 
terial in use, and devising such betterments as 
may be necessary to present material specifi- 
cations in the most efficient manner as to the 
logical arrangement of major and minor groups 
and parts, with due reference given to titles of 
groups and parts, pattern or part number, and 
symbols to be used in requisitioning materials. 

Results Obtainable ; 
a Simplifies purchasing. 
115 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

b Reduces actual production costs, through 
assuring quality of material which can 
be machined most effectively. 

c Increases capacity of plant where material 
can be specified, which will process more 
quickly and effectively. 

d Usually improves quality of product. 

e Reduces spoilage, defectives and rejections. 

/ Assures prompt ordering and improved 
follow-up of purchasing. 

g Permits improved and accurate costing of 
work. 

h Reduces much confusion and arguments 
between purchasing department and 
plant, due to the use of haphazard 
judgment. 

i Facilitates inspection. 

j Forms basis of accurate planning. 

F 4. Provide Operation Analysis 

Described as: 

STUDYING operation data and working 
up standard procedure showing operations 
in sequence, operation symbols, departments 
affected, and data as to best and alternate ma- 
chine or bench where work will be done, material 
stations, set-up times, and standard hourly pro- 
ductions for best and alternate machines or 
benches, material specifications and other perti- 
nent data in connection with operations per- 
formed. 

Results Obtainable: 

a Reduces direct operation and production 

costs. 
b Assures best sequence in performance of 

operations. 
c Facilitates routing work through a plant, 
and utilization of most economical ma- 
chines. 

116 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

d Provides basis for improved planning, 
scheduling, dispatching and controlling 
of plant capacity. 

e Reduces expense of idleness of plant capac- 
ity- 

/ Facilitates prompt tool deliveries and 

control. 

g Decreases usual set-up time. 

h \n many cases decreases investment of 
small tool equipment. 

i Indicates overloaded or underloaded equip- 
ment and machines. 

j Usually decreases material and product 
handling costs. 

k Facilitates more balanced production, and 
more regular production intervals. 

/ Improves labor and departmental rela- 
tionships. 

m Reduces congestion and facilitates keep- 
ing delivery promises. 

n Reduces loss of material due to either con- 
gestion or breakage. 

o Facilitates inspection. 

p Provides an important factor, in more 
definite estimates of prospective work. 

F 5. Develop Tool Analysis 

Described as: 

STUDYING the tool data and working up 
standardized procedures showing operations 
in sequence for a given part; description of tool, 
code number of tool, number of tools available, 
where used and the location, and the tool crib 
number. 

Results Obtainable: 
a Reduces loss of tools. 
h Improves tool design. 
c Expedites handling and moving of tools 
and tool service to machines. 

117 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

d Reduces actual production costs, and in 
many cases length of time for individual 
operations. 

e Lowers cost of making tools, as well as 

maintenance of tools. 
/ Improves quality of work finished. 

g Insures work being done with tools in 
proper condition for highest efficiency. 

h Insures most effectual use of machines and 
entire plant capacity. 

i Eliminates congestion in tool storage. 

j Reduces loss of expensive tools. 

k Facilitates planning, scheduling, and con- 
trolling of equipment. 

/ Improves relationships between workers 
and foremen. 

m Reduces amount of space necessary for 
tool storage in many cases. 

n Reduces cost of tools. 

o Eliminates much confusion and arguments, 
and haphazard judgment as to use and 
application of various tools. 

p Assures the use of machines to their highest 
speeds and feeds. 

q Eliminates much abuse of machine capaci- 
ty, and reduces repair and maintenance 
costs. 

r Extends life of machines and tools. 

F 6* Refine Dispatching and Timekeeping 

Described as: 

ANALYZING the methods in use in keeping 
record of time spent on work and in dis- 
patching jobs to machines and working places, 
and developing such methods for keeping time 
of equipment and workers as will provide in- 
formation regarding good and bad work produc- 
ed ; showing standard hourly productions against 
which performance can be measured; recording 

118 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

the cost of time taken for work done, showing 
what men and machines are working on, what 
work is to come next, arranging for the move- 
ment of material, and providing that things need- 
ed are in readiness for next jobs. 

Results Obtainable: 

a Reduces direct and indirect labor costs. 
b Makes it possible to accurately account 

for all time put in on production. 
c Facilitates better balancing of plant ca- 
pacity. 
d Eliminates much expensive idleness of 

plant capacity, reducing delays. 
e Insures that materials and tools are ready 

for use by the worker, at the proper 

time. 
/ Facilitates the control of production. 
g Reduces amount of work-in-process. 
h Decreases spoilage. 
i Insures proper count in inspection. 
j Insures proper use of machines on given 

operations. 
k Insures proper sequence of operations. 
/ Reduces over-all time in putting product 

through the plant. 
m Points out many possibilities of economies 

not otherwise discernible. 
n Indicates condition of the progress of each 

job at every step. 
Reduces delays of workers waiting for 

orders or instructions, keeping jobs 

ahead to the fullest extent possible. 
p Facilitates the keeping of delivery promises. 
q Improves relationship between worker and 

foreman. 
r Facilitates better foremanship. 
5 Prevents many errors in payroll. 

119 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

F 7. Analyze Purchasing, Traffic 

and Receiving 

Described as: 

STUDYING the methods in connection with 
purchasing, traffic and receiving, as a 
means of developing ways to anticipate require- 
ments to better advantage, following up pur- 
chases more efficiently, and arranging for a 
better receiving and inspection of materials. 

Results Obtainable : 

a Improves purchasing. 

b Develops better follow-up for delivery. 

c Facilitates storage and material control. 

d Reduces cost of receiving. 

e Facilitates inspection and reduces in- 
spection costs. 

/ Usually eliminates many delays in opera- 
tions awaiting materials. 

g Decreases inventories. 

h Reduces over-purchase. 

i With proper specifications and combina- 
tion of similar items, usually permits 
more economical purchasing, and re- 
duces material costs. 

j Establishes basis for more accurate account- 
ing. 

k Facilitates prompt location of materials. 

/ In many cases results in higher quality of 
material being available. 

m Eliminates much spoilage, wastage, 
shrinkage and obsolescence. 

n Assures receipt of all material paid for. 

Facilitates detection of materials of im- 
proper quality, design or variations from 
specification. 

120 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

p Reduces time wasted searching for mis- 
placed and lost materials. 

q Reduces expensive idleness of machines 
waiting for materials. 

r Improves relationships between buyer and 
source of supply. 

5 Facilitates keeping delivery promises. 

/ Improves planning, scheduling, dispatch- 
ing and controlling of production. 

M Provides improved basis for costing and 
pricing product. 

p 3 Institute Inventory of Hours of 

Labor Ahead 

Described as: 

ANALYZING work on hand in hours, accord- 
ing to class of product, department and 
nature of equipment, and arranging for a current 
and continuous inventory of work to do, the 
basis of which will be advanced notice of condi- 
tions, whether normal, or congested or excess 
capacity, all of which will be valuable in both 
planning and selling. 

Results Obtainable : 

a Improves executive control. 

b Facilitates the use of all available capaci- 
ties, eliminating much expensive idle- 
ness. 

c Lowers direct labor costs. 

d Facilitates keeping delivery promises. 

e Makes possible balanced production. 

/ Aids in the reduction of work-in-process. 

g Facilitates keeping of jobs and operations 
in proper sequence. 

h Aids in making available knowledge as to 
whereabouts of each job. 

121 



WHAT INDUSTRIAL ENGINEERIN G INCLUDES 

i Facilitates planning, scheduling, dispatch- 
ing and controlling of all work. 

j Improves relationship between workers 
and management. 

k Indicates possibility of reduction of in- 
direct labor costs. 

/ By planning labor requirements well in 
advance, facilitates employment of bet- 
ter workers. 

m Reduces overtime and expensive "extra 
hour" work. 

n Improves foremanship. 
F 9. Establish Order Progress Records 

Described as: 

STUDYING means employed to watch pro- 
gress of orders as to work done and ar- 
ranging to show in the most comprehensive 
manner the exact condition of any part, group, 
or order in its entirety. 

Results Obtainable : 

a Facilitates planning, scheduling, dispatch- 
ing and controlling of production. 

b Reduces work-in-process. 

c Gives definite knowledge of status of each 
job. 

d Facilitates keeping operations and orders 
in their proper and most economical 
sequence. 

e Facilitates keeping delivery promises, and 
where doubtful, indicates advisability 
of extra production or changes in sche- 
dule. 

/ Reduces necessity for expensive overtime 
and "extra hour" work. 

g Usually results in lowered costs for assem- 
bly and shipping. 

122 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

h Eliminates much expensive idleness of 
plant capacity. 

i Improves service to customers, both as to 
intelligent and positive information and 
better deliveries. 

j Eliminates much confusion, congestion and 
arguments regarding deliveries and pro- 
gress, as well as arbitrary guesses and 
estimates on the part of foremen and 
other executives. 

k Improves foremanship. 

/ Improves relationship, and establishes 
spirit of cooperation between workers 
and management, replacing old driving 
tactics of supervision. 

m Eliminates much need for order chasing, 
and in this way reduces actual overheads. 

n Improves relationships between sales and 
operating departments. 

Prevents many cancellations. 

p Discourages expensive changing from one 
job to the other. 

q Establishes basis for more intelligent de- 
cisions as to future program and poli- 
cies. 

r Establishes intelligent basis for decision as 
to need of increased capacity, and often 
prevents purchase of unnecessary addi- 
tional equipment. 

p 10. Install Graphical Planning 

and Scheduling 

Described as: 

STUDYING methods in use for planning and 
scheduling production, as a basis for de- 
veloping graphic presentations showing what 

123 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

has been scheduled, material on hand, standard 
hourly productions, ratio of performance to 
standard, whether work is behind or ahead of 
schedule, and reasons for failures to produce 
according to schedule. 

Results Obtainable: 

a Improves planning, scheduling, dispatch- 
ing and controlling of production, co- 
ordinating all factors in a comprehensive 
way. 

b Encourages and facilitates the use of in- 
formation available. 

c Insures more intelligent executive decisions. 

d Improves executive control. 

e Reduces amount of detail and burden to 
be handled by executives. 

/ Improves deliveries. 

g Facilitates making definite delivery prom- 
ises. 

h Facilitates keeping delivery promises. 

i Offers basis for definite dispatching and as- 
signment of work to each machine. 

j Reduces expensive idleness of unused capac- 
ity, emphasizing such idleness for prompt 
executive attention. 

k Indicates reason for idleness, separating 
the inefficiencies of workers from those 
of management by showing the idleness 
caused by worker because of waits for 
material, tools, instructions, equipment, 
as well as any other factors. 

/ Reduces product cost. 

m Usually reduces overhead. 

n Facilitates routing of work in proper se- 
quence, and points out where work 
would be most economically produced. 

124 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Reduces over-all time for work to go 

through plant. 
p Reduces work-in-process. 
q Increases production. 
r Permits of smaller inventories, to secure 

same results. 
5 Facilitates improved purchasing. 
/ Offers better basis for improved costing 

and accounting. 
u Furnishes current analysis and the control 

of labor costs. 
V Facilitates payment of wages according to 

incentive plans. 
w Offers valuable sales data for use of sales 

department. 

X Usually results in improvement and 
standardization of production meth- 
ods, processes, facilities and materials. 

y Improves service to customers, both as to 
information and deliveries. 

z Establishes better relationship between 
sales, operation, purchasing, engineering 
and accounting departments. 

aa Establishes basis for more intelligent de- 
cisions as to future program and policies. 

bh Indicates without argument and confusion 
when increased capacities are necessary. 

cc Eliminates purchase of unnecessary ad- 
ditional equipment, or of unnecessary 
investments in plant extensions. 

dd Eliminates much unnecessary overtime 
and "extra hour'* work. 

ee Offers more intelligent basis for better 
judgment by foremen of workers. 

125 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

ff Eliminates many arguments, much con- 
fusion and haphazard judgment on the 
part of executives, foremen and workers. 

gg Improves foremanship. 

hh Improves industrial relations between 
management and workers. 

a Assures more contentment and satisfac- 
tion among workers. 

jj Usually results in higher grade personnel 
and reduced labor turnover. 



126 



G Personnel Control 

G 1. Determine Basic Wage Rates 

Described as: 

STUDYING underlying considerations in set- 
ting the basic hourly wage rates, and from 
this developing a means whereby analysis of rates 
for the various kinds of work may be made, with 
due reference to cost of living in the district, 
transportation facilities for employes, conditions 
of the work, time necessary to become skilled, 
and degree of strenuousness, all to serve as the 
basis for setting minimum and maximum wages. 

Results Obtainable : 

a Establishes basis for intelligently deciding 
legitimate wage rates, in proper pro- 
portion to the requirements of the work- 
ers and the economic conditions in the 
industry. 

h Assures the workers a "square deal" and 
a satisfactory living wage. 

c Reduces labor turnover. 

d Attracts a higher grade personnel of work- 
ers. 

e Simplifies and facilitates selection and em- 
ployment. 

/ Reduces arguments, confusion and hap- 
hazard judgment regarding wage rates. 

g Tends toward better foremanship. 

h Establishes basis of contentment and satis- 
faction among workers. 

i Provides basis for fair and intelligent dis- 
cussions in instances where collective 
bargaining is resorted to. 

; Provides for necessary factors needed for 
intelligent estimating of cost of produc- 
tive work. 

127 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

k Establishes current comparisons of analy- 
sis to prevent acceptance and pricing of 
work on an uneconomical basis, elimi- 
nating certain losses. 

G 2. Install Incentives 

Described as: 

STUDYING methods in use to provide in- 
centives to workers, and from this develop- 
ing such plans as will reward workers in propor- 
tion to individual attainment, the basis of which 
will be the determination of fair standards of 
performance, the efficiency of each worker to be 
ascertained by comparing actual results against 
these standards, and paying extra amounts ac- 
cordingly. 

Results Obtainable: 

a Provides basis for rewarding workers over 
and above a necessary living wage, in 
proportion to individual efforts for ad- 
ditional production. 

b Provides basis for determining wh ich work- 
ers are not as well trained or efficient as 
others, and supplying them with neces- 
sary training and coaching, or else trans- 
ferring them to operations where they 
can be most effective. 

c Assures every worker a fair and intelligent 
consideration and judgment. 

d Eliminates arguments, confusion, and hap- 
hazard judgment, as to the relative 
worth of various workers. 

e Assures a labor cost in proper proportion to 
production. 

/ Increases production for a given overhead, 
thereby reducing unit cost for overhead. 

12S 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

g Secures cooperation of workers in prevent- 
ing any inefficiencies for which they are 
responsible. 

h Secures cooperation of workers in report- 
ing any inefficiencies for which they are 
not responsible, but which can be pre- 
vented by the management. 

i Secures cooperation among workers, each 
helping the other in their individual 
efforts. 

j Tends to improve foremanship by placing 
more intelligent information in the fore- 
men's hands. 

k Furnishes important factor, in the making 
of definite and intelligent estimates of 
cost on productive work. 

/ Through introducing quality bonus, can be 
be used to improve quality of product. 

tn Through introducing bonus for reduction 
of wastes, can become basis of savings in 
wastes in materials, supplies and tools. 

n Encourages suggestions from workers for 
improvement in methods, processes, fa- 
cilities, materials used, handling equip- 
ment and methods, and control proced- 
ures. 

Ties the workers to the employer, by mak- 
ing them financially interested in in- 
creased production. 

p Reduces labor turnover, because any com- 
pany paying bonus, who also maintains 
market price piece rates, has a distinct 
advantage over concern not paying 
bonus. 

q Attracts and holds higher class workers. 

r Reduces cost of training new workers. 

s Facilitates employment. 

129 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

G 3. Establish Personnel Efficiency 

Records 

Described as: 

ANALYZING such records as may exist, 
covering performance of workers in shop 
and office, and developing ways and means of 
showing the quantity and quality of attainments 
of individuals as the basis for paying bonuses, 
adjusting wages and arranging for promotions. 

Results Obtainable : 

a Establishes basis for intelligent and fair 
judgment of workers. 

b Shows particularly efficient and interested 
workers, who should be rewarded ac- 
cordingly. 

c Indicates workers less efficient and less in- 
dustrious, who can be trained, coached 
or transferred to other positions they 
are better qualified to fill. 

d Establishes a basis for proper promotion, 
both in position and wages for all 
workers. 

e Separates the inefficiencies of management 
from those of workers, and establishes 
a basis for improvement. 

/ Tends to improve foremanship, by placing 
in their hands complete information in 
dealing with their workers. 

g Eliminates arguments, confusion, and hap- 
hazard judgment in dealing with workers. 

h Improves relationship between workers 
and management. 

i Reduces turnover by reducing number of 
unfair discharges. 

130 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

j Points out expensive training of new work- 
ers, which in some cases can be concen- 
trated upon and reduced. 

k Attracts and holds higher grade workers. 

/ Gives every worker an opportunity to serve 
where he can earn highest wages and 
serve most profitably. 

m Establishes an intelligent basis in discus- 
sions where collective bargaining is re- 
sorted to. 

n Improves relationship and develops co- 
operation between workers and em- 
ployers. 

o Assures a "square deal" for all. 

Q 4 Cooperate on Education and Training 

Described as: 

ANALYZING methods in use to secure co- 
operation of workers and foremen, as well 
as the means employed in their training; this 
analysis to be used as the basis of formulating 
plans for training and coaching them, which will 
mean better, more loyal and more contented 
workers and foremen. 

Results Obtainable: 

a Secures interest and cooperation of work- 
ers. 

b Lessens expense of training new workers. 

c Improves foremanship. 

d Reduces labor turnover, because workers 
will usually remain longest where they 
secured their training. 

e Establishes better relationships and secures 
cooperation of workers. 

/ Secures suggestions from workers as to 
improvements in methods, procedures, 
processes, facilities, and other manu- 
facturing factors. 

131 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



g Facilitates employment, permitting the 
use of unskilled workers who can be 
trained in the plant' 

h Improves quality of work since this feature 
can be included in a training course. 

i Attracts and holds higher class of workers, 
because only intelligent ones will re- 
spond to this training. 

j Brings to the front any exceptional talent, 
indicating the men who can be used in 
supervisory capacities. 

c i^ Present Graphics to Workers 

Described as: 

OBSERVING to what extent performance 
of workers, individual and collective, as 
to quality and quantity, are shown to workers, 
as well as the nature of their presentation, and 
arranging for simple but vivid graphs on cards 
or dials, or boards, which will induce the interests 
of the workers and stimulate their creative in- 
stincts. 

Results Obtainable: 

a Secures the interest and cooperation of 
workers, improving relationship between 
them and the manager. 

h Induces better foremanship when foremen 
know that workers are familiar with 
conditions. 

c Insures fair judgment in dealing with work- 
ers. 

d Secures suggestions as to improvements in 
equipment, methods, processes, proce- 
dures and other manufacturing features. 

132 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

e Usually increases production and reduces 
costs. 

/ Establishes better team play among work- 
ers themselves, by setting a common 
objective. 

g Brings into the work a new interest, which 
makes for contentment and satisfaction. 

h Attracts and holds most intelligent workers 
by inducing greater interest in their 
jobs, thereby reducing labor turnover. 

i Brings out particularly good talent, indi- 
cating workers who may be used in su- 
pervisory capacities. 

j Brings an element of "sport" into the 
everyday work. 

G 6. Organize Employment Department 

Described as: 

OBSERVI NG the methods followed in employ- 
ing labor, and with this as a basis, develop- 
ing for the existing conditions, the best methods 
to follow in organizing employment department, 
methods of interviewing applicants, placing 
those engaged, employment records, and other 
factors entering into the work. 

Results Obtainable : 

a Reduces cost of securing and selecting 

workers. 
b Insures maintaining a balanced force, and 

facilitates controlling and maintenance 

of a balanced production, 
c Eliminates much expensive overtime and 

"extra hour" work. 
d Facilitates keeping delivery promise by 

maintenance of an organized force. 
e Reduces overhead through proper selection. 

133 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

f Insures efficient workers through proper 
selection according to job requirements. 

g EHminates possibility of the entrance of 
undesirables in the plant organization. 

h Provides basis for studying labor conditions 
outside of plant and, with this as a basis 
insuring fair dealings with workers. 

i Reduces labor turnover by devoting suf- 
ficient time to select men who are 
adapted to work, and who will remain. 

j Reduces cost of training workers by se- 
curing men most adapted to work to be 
done. 

k Reduces production labor costs by secur- 
ing men most quickly able to adapt 
themselves to new work. 

/ By having applicants available when un- { 
usual demand for more workers comes, > 
new gangs and departments can be 
most quickly organized, resulting, as a 
rule, in considerable savings. 

m Facilitates entire control of production 
through assuring the proper labor sup- 
ply. 

n By providing impartial judgment, insures 
''square deal" to the worker, and im- 
proves relationship between worker and 
employer. 

Provides medium for study and standard- 
ization of wage rates. 

p When labor is scarce, attracts best workers 
who will when they have a choice, go to 
that concern which is reputed to give care- 
ful and intelligent consideration to all ap- 
plications. 

134 



WHAT INDUSTRIAL ENGINEERI NG INCLUDES 

q When labor is plentiful, insures the selec- 
tion of the best available because of 
careful analysis in selection. 

G 7. Capitalize Suggestions 

Described as: 

DEVISING ways and means of securing sug- 
gestions from workers, determining the 
nature of rewards to be offered, handling sugges- 
tions received, and the steps necessary to get the 
value from those accepted. 

Results Obtainable: 

a Secures valuable suggestions for improve- 
ment of methods, processes, equipment, 
design, handling facilities, and other 
features of manufacture. 

h Brings to light any exceptional talent 
which can be used most effectually, and 
in some cases in a supervisory capacity. 

c Secures and maintains the interest and co- 
operation of workers. 

d Improves relationship between workers 
and management. 

e Induces better foremanship, instituting an 
indirect check on foremen. 

/ Points out for correction and separation, 
inefficiencies of management as against 
those of the workers. 

g Attracts and holds higher grade and most 
intelligent workers, and thereby reduces 
labor turnover. 

h In many cases results in actual cost reduc- 
tion. 

i In many cases results in improvement of 
quality of product. 

135 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

G 8. Institute Safety Campaigns 

Described as: 

OBSERVING the nature and scope of safety 
measures, and developing the poHcy and 
program looking toward a safety campaign 
which will reduce preventable accidents to the 
minimum. 

Results Obtainable: 

a Saves lives and suffering among workers. 

b Reduces cost of liability insurance. 

c Prevents disruption of organization which 
occurs when particularly serious acci- 
dents happen. 

d Reduces labor turnover because men re- 
main longest where accident hazards 
are least. 

e Attracts and holds higher grade and more 
intelligent workers who prefer to work 
under safe conditions. 

/ Eliminates expensive idleness of equip- 
ment caused by accident to operator. 

g Establishes new interest among workers, 
and a common bond between worker and 
employer, thus improving relationships. 

h Secures suggestions from workers regarding 
safety, which at the same time often re- 
sult in increased productions. 

i Establishes better relationships and team 
play among workers. 

j Encourages improved foremanship, through 
inducing foremen to become more 
interested in the safety and general re- 
quirements of their men. 

k Can be used as a basis for education, not 
only in safety work but in other interest- 
ing phases of the worker's daily job. 

136 



WHAT IN DUSTRIAL ENGINEERING INCLUDES 

I By establishing more constant labor supply 
eliminates many expensive interruptions 
in current production, affecting not mere- 
ly one policy but in some cases many 
where there is dependent sequence. 

m By reducing interruptions, facilitates 
keeping delivery promises. 

n Discourages radical and ignorant labor 
agitation from the outside. 

G ^ Arrange Employes* Committees and 
Representation 

Described as: 

DEVELOPING the mechanism necessary 
in the form of shop committees and employes 
representation to bring about a greater degree 
of cooperation between workers and manage- 
ment, by enabling the workers to share in the re- 
sponsibility of management. 

Results Obtainable: 

a Secures from workers, valuable suggestions 
for improvements of methods, processes, 
machines, handling facilities, material 
use, management and contiol proce- 
dures, and other important phases of 
manufacture. 

b Through the application of these improve- 
ments, reduces costs and increases pro- 
duction. 

c Definitely establishes and separates re- 
sponsibility for inefficiencies, between 
management for their correction, and 
workers for their attention. 

d Develops more satisfied and contented 
workers by giving them a new interest 
in their job. 

137 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

e Improves relationship between workers, 

and employers. 
/ Gives to the workers a knowledge of the 
various problems and difficulties en- 
countered by management, and elimi- 
nates unfair judgment on their part. 

g Reduces to a marked degree the possibility 
of radical and ignorant agitation from 
outside influences. 

h Improves foremanship by establishing an 
indirect check on foremen themselves. 

i Brings to light any exceptional talent 
which can be used most effectively, and 
in many cases in a supervisory capacity. 

j Permits workers to participate in decisions, 
and thereby abide by them whole-heart- 
edly. This is valuable particularly 
where such decisions ordinarily seem 
unfair to the workers. 

k Reduces labor turnover because workers 
will remain longest where they are most 
interested. 

/ Attracts and holds higher grade and more 
intelligent workers to whom this higher 
responsibility appeals. 

m Improves relationship among workers 
along the line of team work, giving them 
certain common objectives. 

n When increased production is necessary, 
usually secures maximum efforts of the 
workers. 

o In times of depression, secures cooperation 
of workers in campaigns of cost and ex- 
pense reductions. 

p In many cases establishes a basis for im- 
provement in quality. 

138 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

q Usually establishes basis for campaign of 
waste elimination. 

G 10. Prepare Job Analysis and Specification 

Described as: 

ANALYZING the various kinds of work per- 
formed, as the basis for preparing specifica- 
tions covering job requirements and the quali- 
fications needed in workers to match the re- 
quirements. 

Results Obtainable : 

a Establishes basis for most intelligent se- 
lection of workers. 

h Assures each job being filled by worker 
most nearly qualified to fill the same. 

c Reduces actual labor costs. 

d Insures a fair and square judgment of 
workers. 

e Indicates any workers qualified for more 
important work than that they are per- 
forming, making it possible to transfer 
where they can be most effectively used. 

/ Indicates workers not fully qualified for 
the job, who can be trained to fill it or 
be transferred. 

g Insures each worker's possibility to earn 
to his fullest ability. 

h Facilitates dispatching and assignment of 
workers to various operations, and makes 
possible more effective production con- 
trol. 

i Establishes basis for training courses. 

j Reduces labor turnover by eliminating old 
"fit and try" methods of assigning men. 

k Affords better basis for establishing wage 
rates, paying for each operation in pro- 
portion to its worth, with particular 

139 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

reference to the grade of men required. 
/ The analysis of job requirements itself 
often indicates opportunities for much 
improvement and standardization. 

Gil. Prescribe Trade and Vocational Tests 

Described as: 

DEVELOPING such trade and vocational 
tests as will enable an employment manager 
to match qualifications of workers with require- 
ments of given tasks. 

Results Obtainable : 

a Facilitates very definitely, selection of 
workers, qualified to fit required posi- 
tions. 

b Establishes a basis for rewarding workers, 
in direct proportion to their qualifica- 
tions. 

c Assures each worker being allowed to work 
where he can do so most effectively and 
earn the best wages. 

d Will indicate workers who are capable of 
more than the jobs they are filling and 
show possibilities for promotion. 

e Will indicate workers who are not capable 
of filling their present jobs, and who need 
training and coach in'g, or who should be 
transferred to work they can best fill. 

/ Usually results in increasing production. 

g In many cases results in improvement of 
quality of product. 

h Insures intelligent and fair judgment of 
workers. 

i Eliminates many arguments, much confus- 
ion and haphazard judgment of workers 
by foremen. 

140 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

j Improves foremanship by placing in fore- 
men's hands, intelligent information 
with which to deal with workers. 



G 12 Study Insurance and Pension Plans 

Described as: 

ANALYZING insurance and pension plans 
for workers, and determining the best 
methods to follow covering this important phase 
of industrial relations. 

Results Obtainable: 

a Improves relationship between workers 
and employer. 

h Develops organization of satisfied and con- 
tented workers who realize that their 
present and future is cared for. 

c Disposes of problem of older workers, 
whose efficiency and productivity has 
gradually dropped and who should be re- 
placed by younger men. 

d Reduces turnover because workers will 
remain longest where their interests are 
best cared for, and because by leaving 
they will lose the value of their term of 
employment in future pensions, as well as 
present insurance. 

e Attracts and holds higher grade and most 
intelligent workers who will remain 
where their interests, and that of their 
family in the present and future, is most 
cared for. 

/ Discourages radical and ignorant agita- 
tion from the outside. 

141 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

O 13. Develop Stock Participation 

Possibilities 

Described as: 

AFTER study of a particular situation, deter- 
mining the best plan and the ways and 
means of inducing workers to purchase stock of 
the company, thereby securing the interest of 
the employes due to their having a stake in the 
business. 

Results Obtainable : 

a Secures interest and cooperation of workers 
and improves relationship between them 
and employer. 

h Secures valuable suggestions from workers 
as regards methods, processes, machines, 
product, materials, and other phases of 
manufacturing, which often result in 
higher quality, increased production, 
and reduced costs. 

c Discourages radical and ignorant labor 
agitation from the outside. 

d Reduces labor turnover because financial 
interest is an additional incentive to 
remain, particuarly where leaving em- 
ploy will mean a sacrifice of possible 
profits. 

e Will attract and hold higher grade and 
most intelligent workers, who will pre- 
fer to work where greatest interest can 
be secured. 

/ During prosperous times, offers additional 
incentive for highest efficiency. 

g During depressions, will serve to secure 
greater interest in cost reductions and 
waste eliminations. 

142 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

h Will encourage workers to eliminate in- 
efficiencies for which they are respon- 
sible. 

i Will encourage workers to point out in- 
efficiencies for the elimination of which 
management is responsible. 

j Will bring workers in closer touch with 
problems and difficulties of management, 
and eliminate much unfair judgment and 
prejudices on their part. 

G 14. Introduce Foremen's Clubs 

Described as: 

STUDYING the conditions in the plant as 
regards the direction of work by foremen, 
the class of men who are working as foremen; 
observing to what extent cooperation among 
foremen would mean greater results; and with 
the above as a basis, organizing foremen's clubs, 
and outlining procedures as to meetings, the 
subjects to discuss, addresses by outsiders, 
"smokers" and the Hke. 

Results Obtainable: 

a Will improve foremanship through better 
training. 

b Will encourage foremen to take greater in- 
terest in their workers, and thereby 
improve relationships between workers 
and management. 

c Will induce cooperation between foremen 
themselves, and thereby develop more 
highly coordinated organization. 

d Will give foremen greater interest in their 
work, and reduce employment turnover 
among them. 

143 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

e Will secure results from foremen as to im- 
provements in manufacturing processes, 
facilities, use, management and control 
procedures, product, and other phases 
of manufacture. 

/ Will attract and hold higher grade and 
more intelligent foremen, giving them 
an opportunity for broadening them- 
selves. 

g Will bring to light any exceptional talent 
which can be used in higher executive 
capacity. 

h Will indicate any foreman whose experience 
qualifications, or viewpoints do not fit 
them to successfully fill a foreman's 
position, and permit of their training and 
coaching. 

i Will establish an incentive to all workers 
to promote themselves into foreman's 
position, making such positions most 
highly desired. 



144 



li Industrial Analyses 

H 1 • Organization Plan and Personnel 
Analysis 

Described as: 

ANALYZING and reporting on organization, 
with reference to nature of organization; 
its present problems and existing practices; the 
present plan of relationship, functions and 
duties; the staff and committee organizations; 
the organization personnel; departments and 
employes; office procedure; and the conduct of 
such departments as order, traffic and shipping. 

Results will indicate means to: 

a Provide maximum of executive control 
with minimum of expense. 

h Cover all functions properly but without 
crossed lines of authority. 

c Build up men and not develop "leaners." 

d Secure proper executive cooperation. 

e Provide authority to fully cover responsi- 
bilities. 

/ Reduce sources of friction. 

g Provide proper departmentalization. 

h Improve organization charts, and written 
functions and duties. 

i Establish basis for measurement of results. 

j Determine the requirements of given posi- 
tions. 

k Secure proper personnel and relocate those 
improperly placed. 

/ Provide basis for proper staff conferences. 

m Place all correlated functions in one 
group. 

n Plan proper lines of authorities and re- 
sponsibilities. 

145 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

Eliminate lost motion. 

p Secure permanency. 

q Arrange divisions so that they can be filled 

by average executives. 
r Separate incongruous functions. 
5 Secure concentration and specialization. 
/ Obtain proper organization spirit. 
u Reduce indirect costs and overheads. 

H 2. Financial and Accounting Procedure 
Analysis (Note: From 
industrial angle.) 

Described as: 

ANALYZING and reporting on financial 
and accounting practices with reference to 
the important financial factors; control accounts, 
statements and graphs; credits and collections; 
methods of accounting and books of entry; ar- 
rangement of and responsibility for accounting; 
costing of product; burdens and expenses; ef- 
fectiveness, verification and use of accounting, 
production and cost control data. 

Results will indicate means to: 

a Provide proper basis for financial judg- 
ments. 

h Establish budget systems. 

c Provide proper monthly profit and loss 
statements. 

d Issue monthly departmental statements. 

e Establish proper departmentalization. 

/ Plan future financial policy. 

g Arrange necessary credits schedule. 

h Ascertain correct control accounts. 

i Improve basic cost information flow. 

j Simplify methods and eliminate unneces- 
sary detail. 

k Establish proper burden distribution policy 
and basis. 

146 



WHAT INDUSTRIAL ENGINEERING 1NCLVD£S 

I Tie in estimating system with cost. 

m Provide anticipative cost knowledge to 
prevent increases. 

n Establish proper credit and collection pro- 
cedure. 

Plan proper organization. 

p Verify accounts. 

q Coordinate production and cost control 
records. 

r Establish anticipative cost control 

s Obtain proper financial and cost data. 

H 3. Product and Inspection Analysis 

Described as: 

ANALYZING and reporting on product and 
inspection with reference to nature of pro- 
duct, records and specifications, changes in de- 
sign, drawings, standardization, material lists, 
numbering to facilitate requisitioning factors in 
connection with process and final inspection, 
gages and tools for inspection, inspection pro- 
cedure, records as to defective and spoiled 
materials, and the measures used in maintaining 
quaHty. 

Results will indicate means to: 

a Determine most profitable lines. 

h Establish best and most economical pro- 
duct design. 

c Provide necessary specifications and plans. 

d Arrange for economical policy in regard to 
design changes. 

e Improve drawings from shop angle. 

/ Facilitate requisitioning and purchasing 
procedure. 

g Establish authorities and responsibilities 
for inspection function. 

147 



WHAT INDUSTRIAL ENGINEERING INCLtTDES 

h Arrange basis for enforcing proper in- 
spection. 

i Reduce spoilage and improve quality. 

j Provide for tool, gage and first piece in- 
spection. 

■k Analyze rejections; establish preventative 
methods. 

4 Assure proper salvage procedure. 

m Secure certainty of proper quality. 

n Arrange and simplify necessary records. 

Reduce inspection expense. 

p Ascertain best materials for most eco- 
nomical manufacture. 

q Institute standardization of product, ma- 
terial and parts. 

H 4. Plant and Equipment Analysis 
Described as: 

ANALYZING and reporting on plant and 
equipment with reference to buildings and 
yards; power; machine equipment as to quality, 
quantity, adaptibihty and non-use; maintenance 
and anticipative inspection ; tool practices, con- 
dition and standardization, and shop transpor- 
tation facilities and methods. 
Results will indicate means to: 
a Ascertain uses and condition of buildings 

and yards. 
b Provide proper routings. 
c Establish proper organization policy hereto. 
d Indicate standardization policies with re- 
gard to buildings and equipment. 
e State conditions of equipment and indicate 

losses in use. 
/ Recommend most economical equipment 
and construction. 

148 



WHAT INDUSTRIAL ENGINEERING INCLUDES 



g Provide anticipative maintenance proce- 
dure. 

h Ascertain proper tool design and service. 

i Eliminate back tracking. 

j Institute tool standardization. 

k Establish proper transportation methods 
and practices. 

/ Indicate proper expansion policies and pro- 
vide therefor. 

m Reduce cost of maintenance, direct and 
indirect. 



H 5. Material Use and Control Analysis 

Described as: 

ANALYZING and reporting on materials, 
with reference to procurement including 
receiving inspection of materials received, stock 
records, stockrooms, and efficient physical con- 
trol of materials. 

Results will indicate means to : 

a Determine most economical materials con- 
sidering operation costs. 
b Lower inspection and receiving expense. 
c Provide proper specifications and tests. 
d Establish proper stock control. 
e Reduce inventories and space used. 
/ Attain more accurate costs. 
g Reduce spoilage. 

h Provide best storing, routing and handling. 
i Control material service. 
j Eliminate losses and wastes. 
149 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

^ ^' Production and Cost Control Analysis 

Described as: 

ANALYZING and reporting on production 
and cost control with reference to methods 
of ordering work, records of movement of ma- 
terials, speed of production, time recording, 
handling of material, planning, routing, dis- 
patching, recording progress and the relations 
between actual and standard performances. 

Results will indicate means to: 

a Ascertain proper control. 

h Reduce work-in-process. 

c Eliminate idleness and delays. 

d Provide 'job-ahead ' basis. 

e Secure accurate time accounting. 

/ Simplify cost records. 

g Attain better deliveries. 

h Reduce handling cost. 

i Increase operation efficiency. 

j Establish wage incentive basis. 

k Maintain job ahead condition. 

/ Improve routing. 

m Provide knowledge of job-in-process. 

n Secure current comparison of actual vs. 

standard performances and of actual 

vs. absorbed capacities. 
Reduce production intervals. 
p Provide basis for delivery promises. 
q Attain more rapid production. 
r Decrease costs. 

150 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

H 7. Labor Control Analysis 

Described as: 

ANALYZING and reporting on personnel, 
with reference to employment, turnover, 
hours, labor conditions, wage payment methods 
welfare effort, committees and meetings, safety, 
compensation and liability insurance. 

Results will indicate means to: 

a Ascertain proper labor policies. 

h Establish safety and welfare procedure. 

c Provide correct organization policy. 

d Maintain proper employment records. 

e Analyze and reduce turnover. 

/ Establish adequate personnel plan. 

g Inaugurate compensation and liability in- 
surance. 

h Create company spirit. 

i Establish proper wage and wage incentive 
plan. 

H 8. Distribution Plans and 

Activities Analysis 

Described as: 

ANALYZING and reporting on distribution 
with reference to organization of sales 
department, sales policies, advertising, competi- 
tors, markets, prices, deliveries, product, pro- 
fitable or unprofitable lines, catalogs, freight 
rates, condensing and standardizing lines, lost 
sales, sales analysis, new lines, general pub- 
licity, and export possibilities. 
Results will indicate means to: 
a Provide proper place in organization plan. 
h Determine most profitable lines and stand- 
ardize. 

151 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

c Eliminate gradually unprofitable lines. 

d Obtain proper estimating procedure. 

e Secure proper basis for delivery promises. 

/ Determine general distribution policies. 

g Inaugurate proper advertising campaign. 

h Analyze competitors' products and points. 

i Investigate and establish markets with 
regard to freights. 

j Initiate literature and follow-up. 

k Graphically analyze lost sales. 

/ Establish sales analysis. 

m Ascertain new and profitable lines — do- 
mestic and foreign. 

n Provide incentives. 

o Reduce sales expense and increase sales 
profits. 

p Set proper prices and adjust them. 



152 



**Knoeppel Organized Service" 

What is organized service? 

1. Based upon many years' contact with in- 
dustrial problems in plants of great variety and 
scope, it is a direct and effective means of solving 
each client's particular problems of industrial 
betterment. 

2. Applied through, not the judgment of one 
man, but the combined efforts of an organized 
staff, brought together after years of selection, 
training and coordination, each man a specialist, 
chosen because of outstanding experience, rep- 
utation and proven results, it brings the com- 
bined strength of all back of every contract 
undertaken. 

How it is applied? 

1st. Through calls, plant investigations and 
general analyses, without obligation, upon re- 
quest, by Firm Members or Trained Engineers 
capable of quickly analyzing your requirements 
and briefly outlining the plan, scope and bene- 
fits of this service in your particular case. This 
offers prospective clients intelligent, convenient 
and confidential aid in considering our service, 
with no expense and a minimum expenditure 
of time. 

2nd. Installation of work undertaken by 
asssignments of Trained Engineers, singly or 
in groups, directed and advised by Supervising 
Engineers, with all the work reviewed by Firm 
Members. This provides direct, positive, com- 
petent, quick and effective application of service 
itself. 

3rd. The above groups assisted by staff or- 
ganizations consisting of: 

153 



WHAT INDUSTRIAL ENGINEERING INCLUDES 

a Educational Division which selects, trains, 
and develops engineers for various grades, 
and maintains proper relationships be- 
tween our staff and the client's person- 
nel. This assures our clients of the 
maintenance of the high grade and de- 
finite ability of all engineers assigned, 
and their proper influence as related to 
the organizations served. 

b Administration Division which handles all 
direct business transactions. This as- 
sures our clients of straightforward, 
businesslike dealings in all transactions 
and associations. 

4th. All the above divisions are coordinated 
and guided by C. E. Knoeppel personally. This 
assures each client a coordinated, organized 
service. 

If you are interested in the service we render, 
we would be pleased to furnish you complete 
details on any or all phases of our work upon 
request. 

This service is applied through 

Surveys and Industrial Analyses 
Installation Service 
Consultation Service 
Technical Service 
Auditing Service 
Management Service 
Intermittent Service 
Retained Service. 

Information on the above will be furnished 
either through correspondence, literature or 
calls by a Firm Member or qualified Staff 
Engineer at your convenience and without obli- 
gation. 

We can describe our plan briefly. 
154 



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